Payable-on-Death Deposit-Account Beneficiary Rules in Connecticut
At a glance
| Accounts covered | Bank deposit accounts and Connecticut or federal credit-union share accounts held by one natural person in trust for another; business and separate fiduciary accounts are excluded from this rule (Conn. Gen. Stat. § 36a-296(a)(1), (3)). |
|---|---|
| How the POD designation is made | Give the institution the beneficiary's name and residential address; a depositor-signed writing may set different trust terms (Conn. Gen. Stat. § 36a-296(a)(1)). |
| Who may be named | The statutory in-trust account names another natural person as beneficiary (Conn. Gen. Stat. § 36a-296(a)(1)). |
| Owner and beneficiary rights before death | Default terms let the depositor withdraw or authorize charges during life; the beneficiary receives title only upon surviving the depositor (Conn. Gen. Stat. § 36a-296(a)(1)(A), (C)). |
| Joint owner's priority over payee | The in-trust rule addresses one natural-person depositor and one natural-person beneficiary; separate joint-account terms allow payment to surviving owners (Conn. Gen. Stat. §§ 36a-296(a)(1), 36a-290(a)). |
| If a payee dies first | If the beneficiary dies first, the statutory trust ends and title vests in the depositor; if the beneficiary survives, title vests in that beneficiary, unless signed terms differ (Conn. Gen. Stat. § 36a-296(a)(1)(B), (C)). |
| Shares among surviving payees | The statutory in-trust presumption addresses one depositor and another natural-person beneficiary; it supplies no split among several payees (Conn. Gen. Stat. § 36a-296(a)(1)). |
| Changing the designation or using a will | A depositor-signed writing may vary the presumed terms; the statutory payment effect does not depend on satisfying will-execution formalities (Conn. Gen. Stat. § 36a-296(a)(1), (2)). |
| Proof, payment, and bank discharge | The institution is protected when it pays under the signed writing or applicable statutory presumptions; surviving-beneficiary title remains subject to credit-union membership restrictions (Conn. Gen. Stat. § 36a-296(a)(1)(C), (2)). |
Connecticut's in-trust account rule
Connecticut's express death-beneficiary deposit provision is an account held by one natural person in trust for another natural person (§ 36a-296(a)(1)). A bank or Connecticut or federal credit union needs the beneficiary's name and residential address to establish it. A separate signed writing may specify the trust terms; otherwise the statute supplies conclusive presumed terms. This is distinct from the ordinary joint-account payment rule in § 36a-290(a).
Under those presumed terms, the depositor may withdraw or authorize charges during life. If the beneficiary dies first, the trust ends and title returns to the depositor. If the beneficiary survives the depositor, title vests in the beneficiary, subject to credit-union membership restrictions (§ 36a-296(a)(1)(A)-(C)). The statutory wording addresses one depositor and another beneficiary, so it does not give a numerical split for an arrangement naming several beneficiaries.
What trips people up
A signed writing can specify terms contrary to the statutory presumptions (§ 36a-296(a)(1)). The institution is fully protected when it pays according to that writing or, where applicable, the presumptions (§ 36a-296(a)(2)). The same subsection says the writing and payment effect are not defeated merely by failure to meet will-execution or gift-delivery requirements.
The in-trust rule excludes business or professional accounts, including escrow and clients' funds accounts, and accounts held by a trustee under a separate document (§ 36a-296(a)(3)). A separate provision governs payment to surviving owners of qualifying joint accounts (§ 36a-290(a)); the in-trust language itself addresses one depositor and one beneficiary.
Common questions
Does the beneficiary have withdrawal control while the depositor lives? The default in § 36a-296(a)(1)(A) gives withdrawal and charge authority to the depositor. A signed writing may state other terms.
What if the named beneficiary dies first? Under the default, the trust terminates and title to the account vests in the depositor (§ 36a-296(a)(1)(B)).
Must the in-trust writing satisfy will formalities? No. Section 36a-296(a)(2) expressly protects its account effect despite a failure to meet the state's testamentary-disposition requirements.
Statutes and sources
The quoted statutory text, official chapter links and access dates appear in the source entries above.
Source links
Every statute quoted above, linked, with the date we checked it.
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