Joint and survivor bank accounts, among the most common forms of ownership of property, have generated a raft of contested proceedings in our courts with problematic results. The latest proposed solution to the litigation, an amendment to Banking Law §675 suggested by the OCA Advisory Committee on Surrogate’s Practice, is the topic of this column and will be discussed below.
Currently, such accounts are governed by the above Banking Law, which in paragraph (a) protects a banking institution that pays out to either customer during the lifetime of both or to the survivor. In paragraph (b) the statute provides that opening such an account “in the absence of fraud or undue influence” is prima facie evidence of the depositor’s intent to create a joint and survivor account and the burden of proving otherwise is on the party challenging the right of the surviving depositor to the funds in the account.
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