§ 54-109.57. Payable on Death (POD) accounts.
§ 54‑109.57. Payable onDeath (POD) accounts.
(a) Shares may beissued to and deposits received from any person or persons establishing anaccount who shall execute a written agreement with the credit union containinga statement that it is executed pursuant to the provisions of this section andproviding for the account to be held in the name of the person or persons asowner or owners for one or more persons designated as beneficiaries, theaccount and any balance thereof shall be held as a Payable on Death account,with the following incidents:
(1) Any owner during theowner's lifetime may change any designated beneficiary by a written directionto the credit union.
(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. 54‑109.58.
(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 survivingtrustee, the beneficiary shall be the holder of the account, and payment by thecredit union to the holder shall be a total discharge of the credit union'sobligation as to the amount paid. If two or more beneficiaries are living atthe death of the last surviving owner, they shall be owners of the account asjoint tenants with right of survivorship as provided in G.S. 54‑109.58,and payment by the credit union to the owners or to any of the owners shall bea total discharge of the credit union'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. 54‑109.58, in the case of multiple owners.
(5) If only onebeneficiary is living and that beneficiary is not of legal age at the death of the last surviving owner, the credit union shall transfer the funds in the account to the general guardian or guardian of the estate, if any, ofthe minor beneficiary. If no guardian of the minor beneficiary has beenappointed, the credit union shall hold the funds in a similar interest bearingaccount in the name of the minor until the minor reaches the age of majority oruntil a duly 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 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 credit union of funds in the Payable on Death account to thebeneficiary shall terminate the personal representative's authority under G.S.28A‑15‑10(a)(1) to collect against the credit union for the fundsso paid, 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:
CREDIT UNION (or name of institution)
PAYABLE ON DEATH ACCOUNT
G.S. 54‑109.57
I (or we) understand that byestablishing a Payable on Death account under the provisions of North CarolinaGeneral Statute 54‑109.57 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 credit union (or name of institution) I (or we), individually orjointly, may change 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.
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(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. 2.
(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 law relating to estate taxes. (1915, c. 115, s. 14; C.S.,s. 5227; 1975, c. 538, s. 1; 1987 (Reg. Sess., 1988), c. 1078, s. 2; 1989, c.164, s. 6; 1989 (Reg. Sess., 1990), c. 866, s. 8; 2001‑267, s. 2; 2001‑487,s. 61(a).)