A.R.S. § 14-6201

Multiple-Party Accounts in Arizona: Key Definitions

Verified April 4, 2026 • 57th Legislature, 1st Regular Session

Arizona law defines the terms used for joint bank accounts, pay-on-death accounts, and other multi-owner deposit arrangements. These definitions determine who owns the money during life, who inherits it at death, and what rights banks have when processing transactions.

Title 14, NONPROBATE TRANSFERS

azleg.gov

The Building Blocks of Account Ownership

Before Arizona law can tell you who owns the money in a joint or pay-on-death account, it needs clear definitions. This statute lays the groundwork for every rule that follows by defining exactly what an "account," "party," "beneficiary," and "agent" mean in the context of deposit accounts at banks, credit unions, and other financial institutions.

"Party" means a person who, by the terms of an account and subject to a request, has a present right other than as a beneficiary or agent to payment from the account.

A.R.S. § 14-6201(6)

The distinction between a "party" and a "beneficiary" is critical. A party has current access to the account during their lifetime. A beneficiary only receives what remains after all parties have died. An agent can make transactions but has no ownership interest at all.

Understanding Pay-on-Death Designations

The statute also defines "pay on death designation" or "POD," which is one of the most common tools Arizona residents use to keep bank accounts out of probate. A POD designation names one or more beneficiaries who receive the account balance when the last surviving party dies.

"Pay on death designation" or "POD" means the designation of: (a) A beneficiary in an account payable on request to one party during the party's lifetime and on the party's death to one or more beneficiaries or to one or more parties during their lifetimes and on the death of all of them to one or more beneficiaries.

A.R.S. § 14-6201(7)(a)

This definition also covers informal trust accounts, sometimes called "Totten trusts," where a party names a beneficiary through the account terms rather than through a separate trust document. If the only trust property is the money in the account, it qualifies as a POD designation under this statute.

These definitions carry real consequences for estate planning. The difference between being named as a "party" versus a "beneficiary" on a bank account determines whether someone can access funds during the account holder's lifetime or only after death.

In this article, unless the context otherwise requires: 1. "Account" means a contract of deposit between a depositor and a financial institution and includes a checking account, savings account, certificate of deposit and share account. 2. "Agent" means a person who is authorized to make account transactions for a party. 3. "Beneficiary" means a person to whom sums on deposit in an account are payable on request after the death of all parties or for whom a party is named as a trustee. 4. "Financial institution" means an organization authorized to do business under state or federal laws relating to financial institutions and includes a bank, trust company, savings bank, building and loan association, savings and loan company or association and credit union. 5. "Multiple party account" means an account payable on request to one or more of two or more parties, whether or not a right of survivorship is mentioned. 6. "Party" means a person who, by the terms of an account and subject to a request, has a present right other than as a beneficiary or agent to payment from the account. 7. "Pay on death designation" or "POD" means the designation of: (a) A beneficiary in an account payable on request to one party during the party's lifetime and on the party's death to one or more beneficiaries or to one or more parties during their lifetimes and on the death of all of them to one or more beneficiaries. (b) A beneficiary in an account in the name of one or more parties as trustee for one or more beneficiaries if the relationship is established by the terms of the account and there is no subject of the trust other than the sums on deposit in the account, whether or not payment to the beneficiary is mentioned. 8. "Payment" or "payable" as it relates to sums on deposit includes withdrawal, payment to a party or third person pursuant to a check or any other request and a pledge of sums on deposit by a party, or any setoff, reduction or other disposition of all or part of an account pursuant to a pledge. 9. "Receive", as it relates to notice to a financial institution, means receipt in the office or branch office of the financial institution in which the account is established. 10. "Request" means a request for payment that complies with all terms of the account, including special requirements concerning necessary signatures and rules of the financial institution. 11. "Sums on deposit" means the balance payable on an account, including interest and dividends earned, whether or not included in the current balance and any deposit life insurance proceeds added to the account by reason of death of a party. 12. "Terms of the account" includes the deposit agreement and other terms and conditions of the contract of deposit and includes the contract form.

View on azleg.gov

This page provides general legal information about Arizona statutes and is not legal advice. For guidance on how this law applies to your situation, speak with a qualified attorney.

Related Statutes

§ 14-6101Nonprobate Transfers on Death: What Counts as Nontestamentary in Arizona

§ 14-6102When Nonprobate Transferees Are Liable for Estate Debts in Arizona

§ 14-6103Creditor Claims Against a Trust After the Settlor Dies in Arizona

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