State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_53 > GS_53-146_2

§ 53‑146.2.  Payable onDeath (POD) accounts.

(a)        If any person orpersons establishing a deposit account shall execute a written agreement withthe bank containing a statement that it is executed pursuant to the provisionsof this section and providing for the account to be held in the name of theperson or persons as owner or owners for one or more persons designated asbeneficiaries, the account and any balance thereof shall be held as a Payableon Death account, with the following incidents:

(1)        Any owner during theowner's lifetime may change any designated beneficiary by a written directionto the bank.

(1a)      If there are two ormore owners of a Payable on Death account, the owners shall own the account asjoint tenants with right of survivorship and, except as otherwise provided inthis section, the account shall have the incidents set forth in G.S. 53‑146.1.

(2)        Any owner maywithdraw funds by writing checks or otherwise, as set forth in the accountcontract, and receive payment in cash or check payable to the owner's personalorder.

(3)        If only onebeneficiary is living and of legal age at the death of the last survivingowner, the beneficiary shall be the owner of the account, and payment by thebank to such owner shall be a total discharge of the bank's obligation as tothe amount paid. If two or more beneficiaries are living at the death of thelast surviving owner, they shall be owners of the account as joint tenants withright of survivorship as provided in G.S. 53‑146.1, and payment by thebank to the owners or any of the owners shall be a total discharge of thebank's obligation as to the amount paid.

(4)        If one or moreowners survive the last surviving beneficiary, the account shall become anindividual account of the owner, or a joint account with right of survivorshipof the owners, and shall have the legal incidents of an individual account inthe case of a single owner or a joint account with right of survivorship, asprovided in G.S. 53‑146.1, in the case of multiple owners.

(5)        If only one beneficiaryis living and that beneficiary is not of legal age at the death of the lastsurviving owner, the bank shall transfer the funds in the account to thegeneral guardian or guardian of the estate, if any, of the minor beneficiary.If no guardian of the minor beneficiary has been appointed, the bank shall holdthe funds in a similar interest bearing account in the name of the minor untilthe minor reaches the age of majority or until a duly appointed guardianwithdraws the funds.

(6)        Prior to the deathof the last surviving owner, no beneficiary shall have any ownership interestin a Payable on Death account. Funds in a Payable on Death account establishedpursuant to this subsection shall belong to the beneficiary or beneficiariesupon the death of the last surviving owner and the funds shall be subject onlyto the personal representative's right of collection as set forth in G.S. 28A‑15‑10(a)(1).Payment by the bank of funds in the Payable on Death account to the beneficiaryor beneficiaries shall terminate the personal representative's authority underG.S. 28A‑15‑10(a)(1) to collect against the bank for the funds sopaid, but the personal representative's authority to collect such funds fromthe beneficiary or beneficiaries is not terminated.

The person or personsestablishing an account under this subsection shall sign a statement containinglanguage set forth in a conspicuous manner and substantially similar to thefollowing:

BANK (or name of institution)


G.S. 53‑146.2

I (or we) understand that byestablishing a Payable on Death account under the provisions of North CarolinaGeneral Statute 53‑146.2 that:

1.         During my (or our)lifetime I (or we), individually or jointly, may withdraw the money in theaccount; and

2.         By written directionto the bank (or name of institution) I (or we), individually or jointly, maychange the beneficiary or beneficiaries; and

3.         Upon my (or our)death the money remaining in the account will belong to the beneficiary orbeneficiaries and the money will not be inherited by my (or our) heirs or becontrolled by will.



(a1)      This section shallnot be deemed exclusive. Deposit accounts not conforming to this section shallbe governed by other applicable provisions of the General Statutes or thecommon law, as appropriate.

(b)        Repealed by SessionLaws 2001‑267, s. 1.

(c)        No addition to suchaccounts, nor any withdrawal, payment, or change of beneficiary shall affectthe nature of such accounts as Payable on Death accounts, or affect the rightof any owner to terminate the account.

(d)        This section doesnot repeal or modify any provisions of laws relating to estate taxes. (1987 (Reg. Sess., 1988), c.1078, s. 1; 1989, c. 164, s. 5; 1989 (Reg. Sess., 1990), c. 866, s. 5; 1998‑69,s. 14; 2001‑267, s. 1.)