CCA discusses state-law interests in a joint bank account

Plain-English summary

Chief Counsel Advice discusses transfers and joint bank accounts under Pennsylvania law. The memorandum states that the parties appeared to have signed an agreement creating a joint tenancy with right of survivorship, but that Pennsylvania law treats each party as having an interest equal to the amount that party contributed while both parties are alive. It distinguishes this arrangement from a common-law joint tenancy and characterizes it as a state statutory joint tenancy.

Ruling snapshot

• Question: How does Pennsylvania law characterize the parties' interests in a joint bank account?
• Outcome: Advice given, the memorandum describes the account as a state statutory joint tenancy and identifies the parties' contribution-based interests.
• Key authorities: IRC § 6321; Pennsylvania law; IRC § 6110(k)(3).

Full text (IRS public release)

ID: CCA_2009062208535842 Number: 200929012
Release Date: 7/17/2009
Office: ----------------------------
UILC: 6321.01-50

From: ------------------
Sent: Monday, June 22, 2009 8:54:10 AM
To: --------------------
Cc: ------------------
Subject: RE: CCA on transfers and joint accounts

Hi: I believe that the parties did sign an agreement indicating that this was a joint tenancy with right of survivorship; however, the PA. law regarding interests in joint tenancies in bank accounts is somewhat unique. According to PA law, while the parties are alive each party has an interest in the account in the amount that they put in the account, and we look to state law to determine property interests. This is not a "common law" joint tenancy; it is a state statutory joint tenancy.