2005 North Carolina Code - General Statutes § 54C-166. Payable on Death (POD) accounts.

§ 54C‑166.  Payable on Death (POD) accounts.

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

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

(1a)     If there are two or more owners of a Payable on Death account, the owners shall own the account as joint tenants with right of survivorship and, except as otherwise provided in this section, the account shall have the incidents set forth in G.S. 54C‑165.

(2)       Any owner may withdraw funds by writing checks or otherwise, as set forth in the account contract, and receive payment in cash or check payable to the owner's personal order.

(3)       If only one beneficiary is living and of legal age at the death of the last surviving owner, the beneficiary is the holder of the account, and a payment by the savings bank to the holder is a total discharge of the savings bank's obligation as to the amount paid. If two or more beneficiaries are living at the death of the last surviving owner, they shall be owners of the account  as joint tenants with right of survivorship as provided in G.S. 54C‑165, and payment by the savings bank to the owners or to any of the owners shall be a total discharge of the savings bank's obligation as to the amount paid.

(4)       If one or more owners survive the last surviving beneficiary, the account shall become an individual account of the owner, or a joint account with right of survivorship of the owners, and shall have the legal incidents of an  individual account in the case of a single owner or a joint account with right of survivorship, as provided in G.S. 54C‑165, in the case of multiple owners.

(5)       If only one beneficiary is living and that beneficiary is not of legal age at the death of the last surviving owner, the savings bank shall transfer the funds in the account to the general guardian or guardian of the estate, if any, of the minor beneficiary. If no guardian of the minor beneficiary has  been appointed, the savings bank shall  hold  the funds in a similar interest‑bearing account in the name of the minor until the minor reaches the age of majority or until a duly appointed guardian withdraws the funds.

(6)       Prior to the death of the last surviving owner, no beneficiary shall have any ownership interest in a Payable on Death account. Funds in a Payable on Death account established under this subsection shall belong to the beneficiary or beneficiaries upon the death of the last surviving owner and the funds shall be  subject only to the personal 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 beneficiary or beneficiaries shall terminate the personal representative's authority under G.S. 28A‑15‑10(a)(1) to collect against the savings bank for the funds so paid, but the personal representative's authority to collect the funds from the beneficiary or beneficiaries is not terminated.

The person or persons establishing an account under this subsection shall sign a statement containing language set forth in a conspicuous manner and substantially similar to the following:

 

SAVINGS BANK (OR NAME OF INSTITUTION) PAYABLE ON DEATH ACCOUNT

G.S. 54C‑166(A)

 

I (or we) understand that by establishing 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 the account; and

2.         By written direction to the savings bank (or name of institution) I (or we), individually or jointly, may change the beneficiary; and

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

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(a1)     This section is not deemed exclusive. Deposit accounts not conforming to this section are governed by other applicable law, as appropriate.

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

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

(d)       This section does not 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).)