It’s always been understood that with a joint bank account, both co-owners (joint tenants) have equal access to the funds within that account. However, there are times when one of the co-owner takes action that presents ramifications for the other co-owner. Sometimes, there are instances when the co-owner taking the money does so without respectfully communicating with the other co-owner. What happens if something like this happens to you?
Michigan’s statute MCL 487.703 provides that when a bank account is titled in the name of two current co-owners, and one of the co-owners dies, a presumption is created that the deceased co-owner intended the surviving co-owner to receive sole ownership of all account funds at the death of the first co-owner. As with most presumptions, it may be overcome by clear and convincing evidence that the deceased co-owner did not intend the surviving co-owner to receive the account funds.
Joint Bank Account Statute
When a deposit shall be made, in any bank by any person in the name of such depositor or any other person, and in form to be paid to either or the survivor of them, such deposits thereupon and any additions thereto, made by either of such persons, upon the making thereof, shall become the property of such persons as joint tenants, and the same together with all interest thereon, shall be held for the exclusive use of the persons so named and may be paid to either during the lifetime of both, or to the survivor after the death of 1 of them, and such payment and the receipt or acquittance of the same to whom such payment is made shall be a valid and sufficient release and discharge to said banking institution for all payments made on account of such deposits prior to the receipt by said bank of notice in writing not to pay such deposit in accordance with the terms thereof.
When a deposit has been made, or shall hereafter be made, in any banking institution transacting business in this state, in the names of 2 or more persons, payable to either or the survivor or survivors, such deposit or any part thereof or any interest or dividend thereon and any additions thereto, made by any 1 of the said persons, shall become the property of such persons as joint tenants, and the same shall be held for the exclusive use of the persons so named and may be paid to any 1 of said persons during the lifetime of said persons or to the survivor or survivors after the death of 1 of them, and such payment and the receipt or acquittance of the same to whom such payment is made shall be a valid and sufficient release and discharge to said banking institution for all payments made on account of such deposits prior to the receipt by said bank of notice in writing not to pay such deposit in accordance with the terms thereof.
The making of the deposit in such form shall, in the absence of fraud or undue influence, be prima facie evidence, in any action or proceeding, to which either such banking institution or surviving depositor or depositors is a party, of the intention of such depositors to vest title to such deposit and the additions thereto in such survivor or survivors.
Joint Bank Account Opinion
A recent Court of Appeals opinion that ruled that despite the banking institution being relieved of any liability, it does not in any way affect that co-owner’s obligation and duty, as it relates to the joint bank account. The case is called In re Estate of Martin Langer, 2019 WL 2438913, Docket No. 342816 (Mich. Ct. App. June 11, 2019) (unpublished).
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