Also known as: multiple party account · multiple-party accounts · multi-party account
Written by attorneys · grounded in primary & secondary sources — see below
An account at a financial institution payable on request to one or more of two or more parties, whether or not a right of survivorship is mentioned. On the death of a party the sums on deposit belong to the surviving party or parties, with the surviving spouse taking priority over other survivors when two or more parties remain.
Mina Mehta opened a savings account at a credit union titled in the names of herself, her husband Michael Miller, and her business partner Miranda Morales. All three had present rights to withdraw funds on request. After Mina died, Michael claimed the entire balance as surviving spouse while Miranda asserted equal shares with him. The court awarded Mina's beneficial interest to Michael under the default rule for multiple-party accounts.
Monica Morgan added her niece Megan Moore to her checking account at a local bank, retitling it "Monica or Megan" with both authorized to request withdrawals. Monica alone deposited funds from her pharmacy business. After Monica died intestate, Megan demanded the balance while Monica's children claimed the funds belonged to the estate. The court classified the account as multiple-party because it was payable on request to either named person.
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The definition turns on whether the account is payable on request to one or more of two or more parties under the deposit agreement. It does not depend on who supplied the funds or whether survivorship is mentioned. Both named persons become parties with present withdrawal rights when the agreement authorizes either to request payment.
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No. The definition of multiple-party account focuses solely on whether the account is payable on request to two or more parties. Survivorship language affects only the distribution of sums on deposit after death and is irrelevant to the initial classification of the account.
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The surviving spouse takes the amount to which the decedent was beneficially entitled immediately before death. If none of the survivors is the surviving spouse, the amount is divided equally among the surviving parties and augments their prior beneficial shares.
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The amount to which the decedent was beneficially entitled passes as part of the decedent's estate rather than directly to the surviving parties. A POD designation in such an account is ineffective.
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