Payable-on-Death Deposit-Account Beneficiary Rules in New York
At a glance
| Accounts covered | Savings, share, certificate and deposit accounts at listed banks, savings institutions and credit unions (§ 7-5.1(c)–(d)). |
|---|---|
| How the POD designation is made | Depositor describes self as trustee for another in the financial institution's account; distinct from an account under a separate trust instrument (§ 7-5.1(d)). |
| Who may be named | A person described by the depositor as the trust-account beneficiary; the statute does not specify a narrower class (§ 7-5.1(a)). |
| Owner and beneficiary rights before death | Depositor may withdraw or charge funds and modify the trust as § 7-5.2(1) allows; beneficiary's title vests only upon surviving the depositor, subject to the will rule (§ 7-5.2(4)). |
| Joint owner's priority over payee | For an account in joint-depositor survivorship form, depositors' title follows Banking Law § 675; surviving joint depositor takes before beneficiary (§§ 7-5.6, 675(a)). |
| If a payee dies first | If beneficiary dies first, trust ends and depositor keeps title; a surviving beneficiary takes at depositor's death unless a qualifying will changes it (§ 7-5.2(2)–(4)). |
| Shares among surviving payees | Surviving beneficiaries share equally, including a predeceased beneficiary's share, unless trust terms provide otherwise (§ 7-5.7(a)–(b)). |
| Changing the designation or using a will | Lifetime withdrawal or an acknowledged/proved writing naming beneficiary and institution, filed there; a will may change it only with the precise direction in § 7-5.2(2). |
| Proof, payment, and bank discharge | Adult surviving beneficiary paid on demand; for minors, parent/guardian route depends on balance; payment before court restraint discharges institution (§§ 7-5.3–7-5.4). |
Requirements one by one
Accounts covered
EPTL § 7-5.1(c)–(d) expressly covers savings, share, certificate and deposit accounts at its listed financial institutions, including state and federal credit unions. Its account-in-trust-form rule is separate from a depositor's account held under a will, trust instrument, court order or decree.
How the designation is made
The depositor establishes the account describing himself or herself as trustee for another person (§ 7-5.1(a), (d)). The beneficiary is the person so described; the provision does not prescribe a separate POD card.
Owner and beneficiary rights before death
The depositor can withdraw from or charge the account and can revoke or change the trust through the writing specified in § 7-5.2(1). A beneficiary who survives receives title only on the depositor's death if no effective will provision changes the account (§ 7-5.2(4)).
Joint depositor priority
For a trust account payable to either joint depositor or the survivor, § 7-5.6 sends title between depositors to Banking Law article XIII-E. Banking Law § 675(a) treats a deposit in that survivorship form as joint property payable to the survivor, ahead of the account beneficiary.
If a beneficiary dies first
If the depositor survives a beneficiary, § 7-5.2(3) terminates that trust and leaves title with the depositor. With multiple beneficiaries, § 7-5.7(b) instead sends proceeds to the surviving beneficiaries in equal proportions unless the trust terms provide otherwise.
Shares among surviving beneficiaries
Under § 7-5.7(a), multiple beneficiaries receive equal proportions by default. The trust's terms may provide different proportions.
Changing the trust or using a will
A lifetime writing changing the trust must name the beneficiary and financial institution, be acknowledged or proved as for recording a real-property conveyance, and be filed with the institution (§ 7-5.2(1)). A will can change the account only if it expressly identifies the named beneficiary and institution; where several such accounts exist, the will affects them all unless it also identifies particular account numbers (§ 7-5.2(2)).
Payment and institutional discharge
Under § 7-5.3(a)–(b), an adult surviving beneficiary is paid on demand. A minor's parent or property guardian can receive up to $10,000; above that amount payment may be made only to a duly appointed property guardian. Under § 7-5.4, qualifying payment before service of a restraining court order discharges the institution.
What trips people up
The word “POD” alone does not describe the statutory account form: § 7-5.1(d) speaks of a depositor as trustee for another. A will can override that account through § 7-5.2(2)'s specific direction naming the beneficiary and institution.
Common questions
Does an adult beneficiary need a court appointment to request payment? Section 7-5.3(a) directs payment on the adult surviving beneficiary's order when the will has not changed the account under § 7-5.2(2).
Does payment protection decide every dispute over the balance? Section 7-5.4 releases the institution to the extent of qualifying payment made before court restraint; it states a rule about the institution's liability for that payment.
Statutes and sources
The verbatim statutory passages and official section URLs appear in the statutes entries above; each was accessed October 8, 2026.
Source links
Every statute quoted above, linked, with the date we checked it.
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