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A.R.S. § 14-6212

Joint Bank Account When Owner Dies

Verified April 4, 202657th Legislature, 1st Regular Session

When a joint bank account holder dies, the remaining funds generally belong to the surviving party or parties. The law spells out how those sums transfer. This includes rules for pay-on-death accounts, accounts without survivorship, and situations involving a surviving spouse.

Title 14, NONPROBATE TRANSFERS

azleg.gov

How Survivorship Works on Multiple-Party Accounts

Joint bank accounts are one of the most common ways families hold money together. When one account owner dies, the law determines who receives the funds. The outcome depends on the type of account and the relationships involved.

If a surviving spouse is one of the remaining parties, the deceased person's share passes to that spouse. When a joint owner dies and no surviving spouse is on the account, the share is divided equally among the other joint account holders. Ownership of the account shifts automatically, without court involvement.

On the death of a party, sums on deposit in a multiple party account belong to the surviving party or parties. If two or more parties survive and one is the surviving spouse of the decedent, the amount to which the decedent, immediately before death, was beneficially entitled under section 14-6211 belongs to the surviving spouse.

A.R.S. § 14-6212(A)

Pay-on-Death Accounts and Accounts Without Survivorship

A pay-on-death (POD) designation adds another layer. While multiple parties are alive, the survivorship rules above apply. When the last surviving party dies, the funds pass to the named POD beneficiaries in equal shares. If no beneficiary survives, the funds become part of the last party's estate.

Accounts set up without survivorship, including those titled as tenancy in common, follow a different path. The deceased person's share transfers through their estate, not to the surviving joint account holders. A POD designation on an account without survivorship has no effect.

Sums on deposit in a single party account without a pay on death designation or in a multiple party account that, by the terms of the account, is without right of survivorship, are not affected by the death of a party.

A.R.S. § 14-6212(C)

Understanding how your accounts are titled matters. The account type controls where the money goes when an owner dies, not your will. A power of attorney does not change these survivorship rules either.

Families often discover the importance of account titling only after a death occurs. Presenting a death certificate to the bank is usually the first step to access accounts after the death of a joint owner. Planning ahead helps avoid confusion during an already difficult time.

14-6212. Death of a party; rights of survivors A. Except as otherwise provided in this section, on the death of a party, sums on deposit in a multiple party account belong to the surviving party or parties. If two or more parties survive and one is the surviving spouse of the decedent, the amount to which the decedent, immediately before death, was beneficially entitled under section 14-6211 belongs to the surviving spouse. If two or more parties survive and none is the surviving spouse of the decedent, the amount to which the decedent, immediately before death, was beneficially entitled under section 14-6211 belongs to the surviving parties in equal shares and augments the proportion to which each survivor, immediately before the decedent's death, was beneficially entitled under section 14-6211. The right of survivorship continues between the surviving parties. B. In an account with a pay on death designation: 1. On the death of one of two or more parties, the rights in sums on deposit are governed by subsection A of this section. 2. On the death of the sole party or the last survivor of two or more parties, sums on deposit belong to the surviving beneficiary or beneficiaries. If two or more beneficiaries survive, sums on deposit belong to them in equal and undivided shares. Thereafter there is no right of survivorship in the event of death of a beneficiary. If no beneficiary survives sums on deposit belong to the estate of the last surviving party. C. Sums on deposit in a single party account without a pay on death designation or in a multiple party account that, by the terms of the account, is without right of survivorship, are not affected by the death of a party. However, the amount to which the decedent, immediately before death, was beneficially entitled under section 14-6211 is transferred as part of the decedent's estate. A pay on death designation in a multiple party account without right of survivorship is ineffective. For purposes of this subsection, designation of an account as a tenancy in common establishes that the account is without right of survivorship. D. The ownership right of a surviving party or beneficiary or of the decedent's estate in sums on deposit is subject to requests for payment made by a party before the party's death, whether paid by the financial institution before or after death or unpaid. The surviving party or beneficiary or the decedent's estate is liable to the payee of an unpaid request for payment. The liability is limited to a proportionate share of the amount transferred under this section to the extent necessary to discharge the request for payment.

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.

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