JOINT ACCOUNTS AND SURVIVORSHIP

Its common knowledge that Section 675 of the Banking Law of New York deals with joint bank accounts. That section does not apply to other types of accounts, such as accounts at brokerage houses or elsewhere. That statute creates a presumption that the depositor intended that the account be a survivorship account, meaning that upon the death of one account holder, the survivor(s) take what’s in the account. Some joint savings accounts are convenience accounts. A convenience account is an account that looks and smells like a joint account with right of survivorship but the depositor to the account really has no intention of vesting the non-contributing account with an interest or moiety. It is created, in most cases, by a parent for the benefit of the parent. That is, the parent creates the account to allow access by the child to discharge obligations of the parent-not to use the funds for the child’s purposes.

In one case, In re Alice F. Weiss, Bronx Surrogate Holtzman determined that a trial will be necessary to determine whether the contributor intended to create a right of survivorship. NYLJ 8-17-1998, p. 30, c.8.

In another case in Queens, Surrogate Nahman said that in order to create a joint account, survivorship language must appear on the signature card or bank ledger. Language on the passbook is not controlling. In re Hamest Sekdorian, NYLJ 9-22-1998, p.24, c4.

Note: There is absolutely nothing in Section 675 of the Banking Law which refers to or creates Surrogate’s Nahman’s requirements. If the Surrogate is correct, what is the value of the presumption?