Ownership Is Based on Contributions, Not Names
Many people assume that if two names appear on a bank account, each person owns half. Arizona law takes a different approach. Ownership is based on net contributions: who actually put the money in.
During the lifetime of all parties an account belongs to the parties in proportion to the net contribution of each to the sums on deposit unless there is clear and convincing evidence of a different intent. As between parties married to each other, in the absence of proof otherwise, the net contribution of each is presumed to be an equal amount.
A.R.S. § 14-6211(A)If a parent deposits $100,000 into a joint account with an adult child who deposits nothing, the parent owns the full balance for purposes of legal disputes. The child can still access the account because the bank honors the signature card, but ownership is a separate question. For married couples, the law presumes equal contributions unless someone proves otherwise.
Beneficiaries and Agents Have No Ownership During the Owner's Lifetime
A pay-on-death beneficiary is named to receive the account balance after the last surviving owner dies. Until that happens, the beneficiary has no legal right to the funds. They cannot make withdrawals, and they have no claim if the owner spends the entire balance before death.
An agent designated on the account has even fewer rights. The agent can make transactions on behalf of the owners, but the agent has no beneficial interest in the money. The agent is there to help manage the account, not to benefit from it.
A beneficiary in an account having a pay on death designation has no right to sums on deposit during the lifetime of any party.
A.R.S. § 14-6211(B)Understanding these distinctions helps families make better decisions about how to title accounts. Adding someone as a joint owner, a POD beneficiary, or an agent produces very different legal results, and choosing the right structure depends on the goal.
