NY BL § 675: Joint Deposits and Shares; Ownership and Payment

New York Banking Law § 675 governs joint bank accounts. It addresses three core issues:

• Ownership: When a deposit is made in the name of two persons "in form to be paid or delivered to either, or the survivor," the statute provides that the account becomes joint property.
• Survivorship: In the absence of fraud or undue influence, the statute creates a presumption that the surviving joint tenant owns the balance.
• Institutional Protection: Financial institutions are protected when they pay either joint tenant unless they receive written notice not to do so.

This statute is frequently implicated in estate litigation, especially where heirs challenge survivorship rights in joint accounts.

Statutory Text

(a) When a deposit of cash, securities, or other property has been made or shall hereafter be made in or with any banking organization or foreign banking corporation transacting business in this state, or shares shall have been already issued or shall be hereafter issued, in any savings and loan association or credit union transacting business in this state, in the name of such depositor or shareholder and another person and in form to be paid or delivered to either, or the survivor of them, such deposit or shares and any additions thereto made, by either of such persons, after the making thereof, shall become the property of such persons as joint tenants and the same, together with all additions and accruals thereon, shall be held for the exclusive use of the persons so named, and may be paid or delivered to either during the lifetime of both or to the survivor after the death of one of them, and such payment or delivery and the receipt or acquittance of the one to whom such payment or delivery is made, shall be a valid and sufficient release and discharge to the banking organization or foreign banking corporation for all payments or deliveries made on account of such deposit or shares prior to the receipt by the banking organization or foreign banking corporation of notice in writing signed by any one of such joint tenants, not to pay or deliver such deposit or shares and the additions and accruals thereon in accordance with the terms thereof, and after receipt of any such notice, the banking organization or foreign banking corporation may require the receipt or acquittance of both such joint tenants for any further payments or delivery.

(b) The making of such deposit or the issuance of such shares in such form shall, in the absence of fraud or undue influence, be prima facie evidence, in any action or proceeding to which the banking organization, foreign banking corporation, surviving depositor or shareholder is a party, of the intention of both depositors or shareholders to create a joint tenancy and to vest title to such deposit or shares, and additions and accruals thereon, in such survivor. The burden of proof in refuting such prima facie evidence is upon the party or parties challenging the title of the survivor.

(c)

1. The superintendent of financial services shall promulgate and may from time to time amend rules and regulations which require that the joint tenants of an account established on or after the date on which the rule or regulation becomes effective and representing any deposit or shares governed by the foregoing provisions of this section, shall, at the time the account is established be informed of the terms and conditions of the account including the relationship and consequences between the parties in the account and the responsibilities of the institution with which the account is established.

2. This subdivision or any rule or regulation thereunder shall not be deemed or construed as increasing or diminishing the rights or liability of any person, or other entity.

Practical Structure of the Statute

Subdivision (a): Creates the joint tenancy and authorizes payment to either tenant or the survivor, while protecting the institution absent written notice.

Subdivision (b): Establishes a prima facie presumption of survivorship intent, shifting the burden to the challenger.

Subdivision (c): Requires regulatory disclosure to account holders but does not alter substantive ownership rights.

Why This Statute Matters in Estate Practice

Banking Law § 675 frequently determines whether funds pass outside the probate estate. The statute does not make every joint account immune from challenge. Instead, it creates a rebuttable presumption of survivorship intent. Litigation typically focuses on:

• Whether the statutory form was satisfied
• Whether fraud, undue influence, or lack of intent can rebut the presumption
• Whether the account was opened for convenience rather than true joint ownership

Understanding the distinction between form, presumption, and proof is essential when evaluating a disputed joint account.