§ 41-2.1. Right of survivorship in bank deposits created by written agreement.
§41‑2.1. Right of survivorship in bank deposits created by writtenagreement.
(a) A deposit accountmay be established with a banking institution in the names of two or morepersons, payable to either or the survivor or survivors, with incidents asprovided by subsection (b) of this section, when both or all parties havesigned a written agreement, either on the signature card or by separateinstrument, expressly providing for the right of survivorship.
(b) A deposit accountestablished under subsection (a) of this section shall have the followingincidents:
(1) Either party to theagreement may add to or draw upon any part or all of the deposit account, andany withdrawal by or upon the order of either party shall be a completedischarge of the banking institution with respect to the sum withdrawn.
(2) During the lifetimeof both or all the parties, the deposit account shall be subject to theirrespective debts to the extent that each has contributed to the unwithdrawnaccount. In the event their respective contributions are not determined, theunwithdrawn fund shall be deemed owned by both or all equally.
(3) Upon the death ofeither or any party to the agreement, the survivor, or survivors, become thesole owner, or owners, of the entire unwithdrawn deposit, subject to thefollowing claims listed below in subdivisions a. through e. upon that portionof the unwithdrawn deposit which would belong to the deceased had theunwithdrawn deposit been divided equally between both or among all the jointtenants at the time of the death of the deceased:
a. The allowance of theyear's allowance to the surviving spouse of the deceased;
b. The funeral expensesof the deceased;
c. The cost ofadministering the estate of the deceased;
d. The claims of thecreditors of the deceased; and
e. Governmental rights.
(4) Upon the death ofone of the joint tenants provided herein the banking institution in which saidjoint deposit is held shall pay to the legal representative of the deceased, orto the clerk of the superior court if the amount is less than two thousanddollars ($2,000), the portion of the unwithdrawn deposit made subject to theclaims and expenses as provided in subdivision (3) above, and may pay theremainder to the surviving joint tenant or joint tenants. Said legalrepresentative shall hold the portion of said unwithdrawn deposit paid to himand not use the same for the payment of the claims and expenses as provided insubdivision (3) above unless and until all other personal assets of the estatehave been exhausted, and shall then use so much thereof as may be necessary topay said claims and expenses. Any part of said unwithdrawn deposit not used forthe payment of said claims and expenses shall, upon the settlement of theestate, be paid to the surviving joint tenant or tenants.
(c) This section shallbe subject to the provisions of law applicable to transfers in fraud ofcreditors.
(d) This section shallnot be deemed exclusive; deposit accounts not conforming to this section, andother property jointly owned, shall be governed by other applicable provisionsof the law.
(e) As used in thissection:
(1) "Bankinginstitution" includes commercial banks, industrial banks, building andloan associations, savings and loan associations, and credit unions.
(2) "Deposit account"includes both time and demand deposits in commercial banks and industrialbanks, installment shares, optional shares and fully paid share certificates inbuilding and loan associations and savings and loan associations, and depositsand shares in credit unions.
(3) "Unwithdrawndeposit" shall be the amount in the deposit account held by the bankinginstitution at the time of the death of the joint tenant; provided, however,that the banking institution shall not be held responsible for any amount properlypaid out of said account prior to notice of such death.
(f) This section doesnot repeal or modify any provisions of the law relating to estate orinheritance taxes.
(g) A deposit accountunder subsection (a) of this section may be established by a written agreementin substantially the following form:
"We, the undersigned,hereby agree that all sums deposited at any time, including sums depositedprior to this date, in the ______________ (name of institution) in the jointaccount of the undersigned, shall be held by us as co‑owners with theright of survivorship, regardless of whose funds are deposited in said accountand regardless of who deposits the funds in said account. Either or any of usshall have the right to draw upon said account, without limit, and in case ofthe death of either or any of us the survivor or survivors shall be the soleowner or owners of the entire account. This agreement is governed by theprovisions of § 41‑2.1 of the General Statutes of North Carolina.
Witness our hands and seals,this ________ day of ________, ________.
______________________________________ (Seal)
______________________________________ (Seal)
______________________________________ (Seal)
______________________________________ (Seal)"
(1959, c. 404; 1963, c. 779; 1969, c. 863; 1973, c.840; 1975, c. 19, s. 14; 1977, c. 671, ss. 1, 2; 1998‑69, s. 11; 1999‑337,s. 9; 1999‑456, s. 59.)