State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_54C > GS_54C-166

§ 54C‑166.  Payable onDeath (POD) accounts.

(a)        If a person orpersons establishing a withdrawable account executes a written agreement withthe savings bank containing a statement that it is executed under this sectionand providing for the account to be held in the name of the person or personsas owner or owners for one or more persons designated as beneficiaries, theaccount and any balance of the account is held as a Payable on Death accountwith the following incidents:

(1)        Any owner during theowner's lifetime may change any designated beneficiary by a written directionto the savings 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. 54C‑165.

(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 is the holder of the account, and a payment by thesavings bank to the holder is a total discharge of the savings bank's obligationas to the amount paid. If two or more beneficiaries are living at the death ofthe last surviving owner, they shall be owners of the account  as joint tenantswith right of survivorship as provided in G.S. 54C‑165, and payment bythe savings bank to the owners or to any of the owners shall be a totaldischarge of the savings bank'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. 54C‑165, in the case of multiple owners.

(5)        If only onebeneficiary is living and that beneficiary is not of legal age at the death ofthe last surviving owner, the savings bank shall transfer the funds in theaccount to the general guardian or guardian of the estate, if any, of the minorbeneficiary. If no guardian of the minor beneficiary has  been appointed, thesavings bank shall  hold  the funds in a similar interest‑bearing accountin the name of the minor until the minor reaches the age of majority or until aduly appointed guardian withdraws 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 establishedunder this subsection shall belong to the beneficiary or beneficiaries upon thedeath of the last surviving owner and the funds shall be  subject only to thepersonal representative's right of collection as set forth in G.S. 28A‑15‑10(a)(1).Payment by the savings 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 savings bank for thefunds so paid, but the personal representative's authority to collect the fundsfrom the 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:


G.S. 54C‑166(A)

I (or we) understand that byestablishing a Payable on Death account under G.S. 54C‑166(a) 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 savings bank (or name of institution) I (or we), individually orjointly, may change the beneficiary; 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 is notdeemed exclusive. Deposit accounts not conforming to this section are governedby other applicable law, as appropriate.

(b)        Repealed by SessionLaws 2001‑267, s. 4, effective October 1, 2001.

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

(d)        This section doesnot repeal or modify any law relating to estate taxes. (1991, c. 680, s. 1; 1998‑69,s. 19; 2001‑267, s. 4; 2001‑487, s. 61(b).)