75-6-107 - Rights of creditors.
75-6-107. Rights of creditors.
No multiple-party account will be effective against an estate of a deceased party totransfer to a survivor sums needed to pay debts, taxes, and expenses of administration, includingstatutory allowances to the surviving spouse, minor children and dependent children, if otherassets of the estate are insufficient. A surviving party, P.O.D. payee, or beneficiary who receivespayment from a multiple-party account after the death of a deceased party shall be liable toaccount to his personal representative for amounts the decedent owned beneficially immediatelybefore his death to the extent necessary to discharge the claims and charges mentioned aboveremaining unpaid after application of the decedent's estate. No proceeding to assert this liabilityshall be commenced unless the personal representative has received a written demand by asurviving spouse, a creditor, or one acting for a minor or dependent child of the decedent; and noproceeding shall be commenced later than two years following the death of the decedent. Sumsrecovered by the personal representative shall be administered as part of the decedent's estate.This section shall not affect the right of a financial institution to make payment on multiple-partyaccounts according to the terms thereof or make it liable to the estate of a deceased party unlessbefore payment the institution has been served with process in a proceeding by the personalrepresentative.
Enacted by Chapter 150, 1975 General Session