72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 456
A-Engrossed
Senate Bill 33
Ordered by the Senate March 24
Including Senate Amendments dated March 24
Printed pursuant to Senate Interim Rule 213.28 by order of the
President of the Senate in conformance with presession filing
rules, indicating neither advocacy nor opposition on the part
of the President (at the request of Joint Interim Committee on
Judiciary for Oregon State Bar Elder Law Section)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
Creates rebuttable presumption that sums remaining on deposit
in joint account at death of one party belong to surviving party
or parties. Exempts banks and credit unions from liability under
certain circumstances for distributing to surviving party or
parties sums remaining on deposit in joint account at death of
one party.
A BILL FOR AN ACT
Relating to joint accounts; creating new provisions; and amending
ORS 708A.470 and 723.480.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 708A.470 is amended to read:
708A.470. (1) Sums remaining on deposit { + in a bank + } at
the death of a party to a joint account { + are rebuttably
presumed to + } belong to the surviving party or parties as
against the estate of the decedent { - , unless there is clear
and convincing evidence of a different intention in the bank's
account records at the time of death - } . If there are two or
more surviving parties, their respective ownerships during their
lifetimes shall be in proportion to their previous ownership
interests under ORS 708A.465 augmented by an equal share for each
survivor of any interest the decedent may have owned in the
account immediately before death. The right of survivorship
continues between the surviving parties.
(2) If the account is a P.O.D. account:
(a) On the death of one of two or more original parties, the
rights to any sums remaining on deposit are governed by
subsection (1) of this section.
(b) On the death of the sole original party or the survivor of
two or more original parties, any sums remaining on deposit
belong to the P.O.D. payee or payees, if surviving, or to the
survivor of them if one or more die before the original party. If
two or more P.O.D. payees survive, there is no right of
survivorship in the event of death of a P.O.D. payee thereafter
unless the terms of the account or deposit agreement expressly
provide for survivorship between them.
(3) If the account is a trust account:
(a) On the death of one of two or more trustees, the rights to
any sums remaining on deposit are governed by subsection (1) of
this section.
(b) On the death of the sole trustee or the survivor of two or
more trustees, any sums remaining on deposit belong to the person
or persons named as beneficiaries, if surviving, or to the
survivor of them if one or more die before the trustee, unless
there is clear and convincing evidence of a contrary intent. If
two or more beneficiaries survive, there is no right of
survivorship in event of death of any beneficiary thereafter
unless the terms of the account or deposit agreement expressly
provide for survivorship between them.
(4) In other cases, the death of any party to a multiple-party
account has no effect on beneficial ownership of the account,
other than to transfer the rights of the decedent as part of the
estate of the decedent.
(5) A right of survivorship arising from the express terms of
the account or under this section, a beneficiary designation in a
trust account, or a P.O.D. payee designation, cannot be changed
by will.
{ + (6) The rebuttable presumption under subsection (1) of
this section may be overcome by evidence establishing that:
(a) The deceased party intended a different result; or
(b) The deceased party lacked capacity when the joint account
was established.
(7) A bank is not liable for distributing sums remaining on
deposit at the death of a party to a joint account to a surviving
party or parties in accordance with the account agreement unless,
prior to distributing sums to a surviving party or parties:
(a) The bank has received notice of an adverse claim under ORS
708A.435; and
(b) The adverse claimant proceeds as required under ORS
708A.435. + }
SECTION 2. ORS 723.480 is amended to read:
723.480. (1) Sums remaining on deposit { + at a credit
union + } at the death of a party to a joint account { + are
rebuttably presumed to + } belong to the surviving party or
parties against the estate of the decedent { - , unless there is
clear and convincing evidence of a different intention in the
credit union's account records at the time of death of the
party - } . If there are two or more surviving parties, their
respective ownerships during their lifetimes shall be in
proportion to their previous ownership interests under ORS
723.478, augmented by an equal share for each survivor of any
interest the decedent may have owned in the account immediately
before death. The right of survivorship continues between the
surviving parties.
(2) If the account is a P.O.D. account:
(a) Upon the death of one of two or more original parties, the
rights to any sums remaining on deposit are governed by
subsection (1) of this section.
(b) Upon the death of the sole original party or the survivor
of two or more original parties, any sums remaining on deposit
belong to the P.O.D. payee or payees, if surviving, or to the
survivor of them if one or more die before the original party. If
two or more P.O.D. payees survive, there is no right of
survivorship in the event of death of a P.O.D. payee thereafter
unless the terms of the account or deposit agreement expressly
provide for survivorship between them.
(3) If the account is a trust account:
(a) Upon the death of one of two or more trustees, the rights
to any sums remaining on deposit are governed by subsection (1)
of this section.
(b) Upon the death of the sole trustee or the survivor of two
or more trustees, any sums remaining on deposit belong to the
person or persons named as beneficiaries, if surviving, or to the
survivor of them if one or more die before the trustee, unless
there is clear and convincing evidence of a contrary intent. If
two or more beneficiaries survive, there is no right of
survivorship in the event of death of any beneficiary thereafter
unless the terms of the account or deposit agreement expressly
provide for survivorship between them.
(4) In other cases, the death of any party to a multiple-party
account has no effect on beneficial ownership of the account,
other than to transfer the rights of the decedent as part of the
estate of the decedent.
(5) A right of survivorship arising under this section or from
the express terms of the account, a beneficiary designation in a
trust account or a P.O.D. payee designation cannot be changed by
will.
{ + (6) The rebuttable presumption under subsection (1) of
this section may be overcome by evidence establishing that:
(a) The deceased party intended a different result; or
(b) The deceased party lacked capacity when the joint account
was established.
(7) A credit union is not liable for distributing sums
remaining on deposit at the death of a party to a joint account
to a surviving party or parties in accordance with the account
agreement unless, prior to distributing sums to a surviving party
or parties:
(a) The credit union has received notice of an adverse claim
under ORS 723.468; and
(b) The adverse claimant proceeds as required under ORS
723.468. + }
SECTION 3. { + The amendments to ORS 708A.470 and 723.480 by
sections 1 and 2 of this 2003 Act apply to the death of a party
to a joint account that occurs on or after the effective date of
this 2003 Act. + }
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