S 8649: Provides for multiple-person accounts; requires a signature card; provides that absent indication to the contrary, funds remaining in such an account upon the death of the depositor shall be deemed part of the depositor's estate.

  
  STATE OF NEW YORK ________________________________________________________________________ 8649  IN SENATE January 7, 2026 ___________ Introduced by Sen. SANDERS -- read twice and ordered printed, and when printed to be committed to the Committee on Banks AN ACT to amend the banking law, in relation to establishing multiple- person accounts; and to repeal certain provisions of such law relating thereto The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 675 of the banking law is amended by adding a new 2 subdivision (d) to read as follows: 3 (d) This section shall not apply to accounts established after July 4 first, two thousand twenty-six in New York state for personal use. 5 § 2. Section 678 of the banking law is REPEALED and a new section 678 6 is added to read as follows: 7 § 678. Multiple-person accounts; personal account ownership and 8 payment. 1. Definitions. Notwithstanding any other provisions of law, 9 for the purposes of this section: 10 (a) "Account" means a contract of deposit between one or more account 11 owners and a bank. 12 (b) "Administer" means, in connection with the account signature card, 13 a bank offering the account signature card to one or more account owners 14 upon establishing or changing the terms of a single-owner or multiple- 15 person account and providing information to help such account owner or 16 owners to understand and complete such account signature card; provided 17 however, that nothing in this section shall be construed to require bank 18 personnel to provide legal or estate planning advice to an account owner 19 or owners pursuant to this section. 20 (c) "Account owner" means a person who, by the terms of an account, 21 has a present right, subject to request, to payment from the account 22 other than an authorized signer. 23 (d) "Account signature card" means the following contract of deposit 24 establishing the terms of a single-owner or multiple-person account in 25 the following form, or a substantially equivalent form in the account 26 owner's primary language, in fourteen-point type, published by the 27 department of financial services, whether in physical or electronic 28 written form: 29 ACCOUNT SIGNATURE CARD EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD09468-01-5 
 S. 8649 2 1 THIS IS AN IMPORTANT LEGAL DOCUMENT. THE SELECTIONS BELOW WILL DETERMINE 2 WHO OWNS THE FUNDS IN THIS ACCOUNT AND HOW SUCH FUNDS WILL PASS UPON THE 3 DEATH OF AN ACCOUNT OWNER. YOU MAY WISH TO CONSULT AN ATTORNEY. 4 I. ACCOUNT OWNER(S). Identify the account owner or owners. 5 Each account owner's share of the account funds is equal to their 6 deposits minus their withdrawals. The bank is not responsible for deter- 7 mining shares and may pay funds to any identified account owner. 8 1. 9 2. 10 3. 11 II. AUTHORIZED SIGNER(S). Identify the authorized signer or signers 12 (optional). 13 The account owner or owners may (but need not) designate one or more 14 "authorized signers" to make account transactions for their convenience. 15 An authorized signer has no right to take possession of account funds or 16 use such funds for personal benefit. While any account owner lives, the 17 bank may pay funds to any identified authorized signer. 18 1. 19 2. 20 3. 21 III. DISPOSITION OF ACCOUNT WITH MULTIPLE OWNERS UPON DEATH. 22 Only answer the following question if the account has more than one 23 owner. Should a deceased account owner's share of the account funds pass 24 to the other surviving account owner or owners? 25 ____ NO. A deceased account owner's share of the account funds should 26 be disposed of as part of such owner's estate. 27 ____ YES. A deceased account owner's share of the account funds should 28 pass to the surviving account owner or owners. 29 Signature Block and Notarization 30 Account owner(s) and authorized signer(s) MUST SIGN AND DATE BELOW. Any 31 signature below must be acknowledged before a notary public to ensure 32 its validity if this signature card has not been administered by a bank. 33 By signing below, I acknowledge that I have reviewed each section of 34 this form and understand the ownership rights associated with the 35 account selections above. I have marked the type of account I want. 36 Account Owner Signature ________________________________ Date ________ 
 S. 8649 3 1 By signing below, I acknowledge that I have reviewed each section of 2 this form and understand the ownership rights associated with the 3 account selections above. As an authorized signer, I understand that I 4 do not own the funds in this account and have no right to use such funds 5 for my personal benefit or to take possession of such funds upon an 6 account owner's death. 7 Authorized Signer(s) Signature ________________________ Date _______ 8 (e) "Authorized signer" means a person authorized to make account 9 transactions for the convenience of an account owner but who does not 10 own the account and has no beneficial right to sums on deposit. 11 (f) "Authorized signer designation" means the designation of an 12 authorized signer in an account payable on request to one or more 13 account owners. 14 (g) "Contract of deposit" means a written document establishing the 15 terms of an account between a bank and one or more account owners. 16 (h) "Distributee" means a distributee as defined in section 1-2.5 of 17 the estates, powers and trusts law. 18 (i) "Bank" shall mean a bank as defined in section two of this chap- 19 ter, credit union, savings bank, private banker, savings and loan asso- 20 ciation, foreign banking corporation licensed by the superintendent, and 21 interstate branch established pursuant to article five-C of this chap- 22 ter. 23 (j) "Multiple-owner account" means an account payable on request to 24 two or more account owners. 25 (k) "Multiple-person account" means (1) any multiple-owner account or 26 (2) a single-owner account with an authorized signer designation. 27 (l) "Net contribution" means the sum of deposits made by or on behalf 28 of an account owner less withdrawals made by or on behalf of such 29 account owner which have not been paid to or applied to the use of 30 another account owner and a proportionate share of any charges deducted 31 from the account, plus a proportionate share of any interest or divi- 32 dends earned, whether or not included in the current balance. Such term 33 includes any deposit of life insurance proceeds added to the account by 34 reason of death of the account owner whose net contribution is in ques- 35 tion. 36 (m) "Payment of sums on deposit" or "payment" means withdrawal or 37 payment to an account owner, authorized signer or third person author- 38 ized by the account owner to make transactions pursuant to request. 39 (n) "Person" means an individual, a corporation, organization, or 40 other legal entity. 41 (o) "Personal representative" means a personal representative as 42 defined in section 1-2.13 of the estates, powers and trusts law. 43 (p) "Receive", as it relates to notice to a bank, means receipt in the 44 office or branch office of the bank in which the account is established. 45 (q) "Request" means a request for payment complying with all terms of 46 the account and account signature card, including special requirements 47 concerning necessary signatures and regulation of the bank. 48 (r) "Single-owner account" means an account payable on request to one 49 account owner. 50 (s) "Sums on deposit" means the balance payable on the account, 51 including interest and dividends earned, whether or not included in the 52 current balance and any deposit of life insurance proceeds added to the 53 account by reason of death of an account owner. 
 S. 8649 4 1 (t) "Terms of the account" means the contract of deposit, including 2 the account signature card, and any other terms and conditions of the 3 deposit agreement. 4 (u) "Testamentary beneficiary" means a testamentary beneficiary as 5 defined in section 1-2.18 of the estates, powers and trusts law. 6 2. Scope of section. (a) This section shall apply to multiple-person 7 and single-owner accounts established in New York state for personal 8 use. 9 (b) This section shall not apply to: 10 (i) An account established for a partnership, joint venture, or other 11 organization for a business purpose; 12 (ii) An account controlled by one or more persons as an agent or trus- 13 tee for a corporation, unincorporated association, or charitable or 14 civic organization; or 15 (iii) A fiduciary or trust account in which the relationship is estab- 16 lished other than by the terms of the account. 17 3. Types of accounts. (a) A bank may enter a contract of deposit to 18 establish a single-owner account or a multiple-owner account and may 19 provide for one or more authorized signer designations in each type of 20 account. A multiple-owner account may be with or without a right of 21 survivorship between the other account owners. 22 (b) An account established after the effective date of this section 23 shall be considered either a single-owner account or a multiple-owner 24 account, with or without the right of survivorship, and with or without 25 one or more authorized signer designations. 26 4. Administration of account signature card. (a) The account signature 27 card shall establish the type of account provided, and such accounts 28 shall be governed by the provisions of this section applicable to such 29 account type. 30 (b) The account signature card shall be administered by the bank upon 31 the establishment of an account and thereafter if the account owner or 32 owners change the terms of such account. 33 (c) All account owners on a multiple-owner account must agree in writ- 34 ing to any change in the terms of an account relating to account owner- 35 ship, survivorship rights, and authorized signers designations using the 36 account signature card. 37 (d) The account signature card shall be signed and acknowledged before 38 a notary public unless administered by a bank or filed electronically 39 pursuant to section one hundred thirty-five-c of the executive law and 40 article three of the state technology law and shall comply with other 41 state laws and regulations. 42 (e) Each bank subject to this section shall maintain the account 43 signature card for each account as long as such account remains open and 44 for a period of no less than six years after it is closed. 45 5. Designation of authorized signer. (a) The account owner or owners 46 may use the account signature card to designate a person or persons 47 other than an account owner as an authorized signer. 48 (b) In a multiple-owner account, all account owners must consent to 49 any authorized signer designation in writing using the account signature 50 card. 51 (c) Unless the terms of an authorized signer designation provide that 52 the authority of an authorized signer terminates on disability or inca- 53 pacity of an account owner, such authorized signer's authority shall 54 survive disability and incapacity. 55 (d) Death of the sole account owner or last surviving account owner 56 shall terminate the authority of an authorized signer. 
 S. 8649 5 1 (e) The authority of a person designated as an attorney-in-fact for an 2 account owner under a power of attorney shall take precedence over and 3 supersede the authority of an authorized signer. 4 6. Account ownership during lifetime. (a) In a multiple-owner account, 5 during the lifetimes of all account owners, an account belongs to the 6 account owners in proportion to the net contribution of each to the sums 7 on deposit, unless there is clear and convincing evidence of a different 8 intent. In the absence of proof otherwise, the net contribution of each 9 is presumed to be an equal amount. 10 (b) An authorized signer shall have no beneficial right to sums on 11 deposit. 12 7. Rights at death. (a) Rights at death of an account owner are 13 determined by the terms of the account at the time of such account 14 owner's death. 15 (b) A transfer resulting from the application of this section shall be 16 effective by reason of the terms of the account involved and this 17 section and is not testamentary or subject to estate administration. 18 (c) Unless all the account owners have indicated a preference for the 19 right of survivorship on the account signature card, or there is clear 20 and convincing evidence of a different intent, upon the death of an 21 account owner, sums on deposit in a multiple-owner account shall be 22 disposed of as part of the estate of such deceased account owner. 23 (d) If two or more account owners survive, and all account owners have 24 indicated a preference for the right of survivorship on the account 25 signature card, unless there is clear and convincing evidence of a 26 different intent, the amount to which the decedent, immediately before 27 death, was beneficially entitled, pursuant to subdivision six of this 28 section, shall belong to the surviving account owners in equal shares, 29 and augments the proportion to which each survivor, immediately before 30 the decedent's death, was beneficially entitled to pursuant to such 31 subdivision, and the right of survivorship continues between the surviv- 32 ing account owners. 33 (e) Sums on deposit in a single-owner account or a multiple-owner 34 account that, by the terms of the account, is without right of survivor- 35 ship, are not affected by the death of an account owner, but the amount 36 to which the decedent, immediately before death, was beneficially enti- 37 tled, pursuant to subdivision six of this section, is transferred as 38 part of the decedent's estate. 39 (f) The ownership rights of a surviving account owner, or of the 40 decedent's estate, in sums on deposit is subject to request for payment 41 made by an account owner before the account owner's death, whether paid 42 by the bank before or after death, or unpaid, the surviving account 43 owner or the decedent's estate, is liable to the payee of an unpaid 44 request for payment. The liability is limited to a proportionate share 45 of the amount transferred under this section, to the extent necessary to 46 discharge the request for payment. 47 8. Alteration of rights. (a) An account owner may alter the terms of 48 the account by completing a new account signature card for such account 49 and submitting it to the bank. To be effective, all account owners must 50 consent to the alteration in writing using the account signature card, 51 and the notice must be received by the bank during an account owner's 52 lifetime. 53 (b) A right of survivorship arising from the express terms of the 54 account established pursuant to subdivision seven of this section may 55 not be altered by will. 
 S. 8649 6 1 9. Payment on multiple-owner accounts. A bank, on request, may pay 2 sums on deposit in a multiple-owner account to: 3 (a) one or more of the account owners, whether or not another account 4 owner is disabled, incapacitated, or deceased when payment is requested 5 and whether or not the account owner making the request survives another 6 account owner; or 7 (b) the personal representative of an account owner who is deceased, 8 or if there is none, pursuant to the provisions of article thirteen of 9 the surrogate's court procedure act to the extent applicable, provided 10 that in either case proof of death is presented to the bank showing that 11 such deceased account owner was the survivor of all other account owners 12 named on the account, unless the account is without right of survivor- 13 ship pursuant to subdivision seven of this section. 14 10. (a) Payment to authorized signer. A bank, on request, may pay sums 15 on deposit in an account with an authorized signer designation to such 16 authorized signer whether or not an account owner is disabled, incapaci- 17 tated, or deceased when the request is made or received, and whether or 18 not the authority of the authorized signer terminates on the disability 19 or incapacity of an account owner. 20 (b) Nothing contained herein shall be construed to conflict with 21 federal or state laws or regulations requiring banks to report fraudu- 22 lent or suspicious activity, or release banks from liability for the 23 failure to comply with such state or federal laws and regulations. 24 11. Discharge of bank from liability. (a) Payment made pursuant to 25 this section in accordance with the terms of the account and complying 26 with the account signature card discharges the bank from all claims for 27 amounts so paid, whether or not the payment is consistent with the bene- 28 ficial account ownership of the account as between account owners or 29 their successors. Payment may be made whether or not an account owner 30 or authorized signer is disabled, incapacitated, or deceased when 31 payment is requested, received, or made. 32 (b) Protection under this section does not extend to payments made 33 after a bank has received written notice from an account owner, or from 34 the personal representative, surviving spouse, distributee, or testamen- 35 tary beneficiary of a deceased account owner, to the effect that 36 payments in accordance with the terms of the account, including one 37 having an authorized signer designation, should not be permitted, and 38 the bank has had a reasonable opportunity to act on it when the payment 39 is made. Unless the notice is withdrawn by the person giving it, the 40 successor of any deceased account owner must concur in a request for 41 payment if the bank is to be protected under this section. Unless a bank 42 has been served with process in an action or proceeding, no other notice 43 or other information shown to have been available to the bank affects 44 its right to protection under this section. 45 (c) A bank that receives written notice pursuant to this section or 46 otherwise has reason to believe that a dispute exists as to the rights 47 of the account owners may refuse, without liability, to make payments in 48 accordance with the terms of the account. A bank need not inquire as to 49 the source of a deposit to an account or as to the proposed application 50 of a payment from an account. 51 (d) Protection of a bank under this section does not affect the rights 52 of account owners in disputes between themselves or their successors 53 concerning the ownership of sums on deposit in accounts or payments made 54 from accounts. 55 (e) Beneficial account ownership between account owners apply only to 56 controversies between those persons and their creditors and other 
 S. 8649 7 1 successors, and do not apply the right of those persons to payment as 2 determined by the terms of the account. 3 12. Existing accounts. (a) Each bank shall, for each multiple-person 4 account established before the effective date of this section, provide 5 notice to the account owners of such accounts of the requirement to 6 submit an account signature card. Each bank shall provide such notice 7 within six months of the effective date of this section, and such notice 8 shall include the account signature card. 9 (b) Such notice may be executed by mail or, if authorized by the 10 account owner or owners, electronically, and may be combined with other 11 notices or mailings. If the bank has not received an account signature 12 card from an account owner within six months of providing the first 13 notice pursuant to this section, the bank shall provide a second notice. 14 (c) Accounts established in New York state for personal use prior to 15 July first, two thousand twenty-six, for which an account signature card 16 has not been properly received pursuant to this section, shall be 17 governed by section six hundred seventy-five of this article until such 18 time an account signature card is properly received for such account 19 pursuant to this section. 20 13. Regulations of the superintendent. The superintendent shall 21 promulgate and may from time to time amend rules and regulations which 22 require that the account owner or owners of a multiple-person account 23 under this section be informed of the terms and conditions of the 24 account, including the relationship and consequences between the persons 25 associated with the account, the differences between account types, and 26 the responsibilities of the institution with which the account is estab- 27 lished. 28 14. Severability clause. If any provision of this section or its 29 application to any person or circumstance is held invalid, the invalidi- 30 ty does not affect other provisions or application of this section which 31 can be given effect without the invalid provision or application, and 32 to this end the provisions of this section are severable. 33 § 3. Section 679 of the banking law, as added by chapter 432 of the 34 laws of 2018, is amended to read as follows: 35 § 679. Public awareness; banking services. The superintendent shall 36 conduct a public awareness campaign to educate consumers on different 37 banking services available in the state, particularly those that can 38 assist vulnerable adults in financial planning, including, but not 39 limited to, citizens of an advanced age, individuals with cognitive or 40 developmental disabilities, or those who have health or physical issues 41 that impair their financial independence. The public awareness campaign 42 shall include information regarding the differences between types of 43 accounts, including joint and [convenience] multiple-person accounts, as 44 well as the rights and responsibilities generally recognized for each. 45 The public awareness campaign shall also include, but not be limited to, 46 answers to general concerns and questions that individuals may have with 47 respect to the establishment of certain types of accounts and services, 48 as well as information and recommendations for obtaining more informa- 49 tion. 50 § 4. This act shall take effect July 1, 2026. Effective immediately, 51 the addition, amendment and/or repeal of any rule or regulation neces- 52 sary for the implementation of this act on its effective date are 53 authorized to be made and completed on or before such effective date.