A 8549: Relates to joint spousal and non-spousal accounts and convenience accounts - New York

A8549B → A8549C · 5 edits

MODERATE

The bill was expanded to include a second sponsor and advanced through additional legislative committees. The core policy change redefines the banking law to create two distinct types of accounts: 'joint accounts' where money passes to survivors upon death, and 'non-survivorship accounts' (formerly convenience signer accounts) where funds belong solely to the original owner and do not pass to others upon death.

Scope change

The bill's scope expanded from applying only to accounts established before a specific date to applying to all personal accounts established primarily for household purposes after the effective date, as well as those modified by adding a new person.

SCOPE

A new sponsor, M. of A. Taylor, was added to the bill, and the text was updated to reflect that the bill was reported to the Committee on Codes.

DEFINITION

The definition of 'Joint account' was simplified to mean an account in the name of two or more owners, while the concept of 'Non-survivorship account' was introduced to clarify that funds do not pass to others upon death.

The definition of 'Convenience signer' was updated to explicitly state they have no ownership interest, no right of survivorship, and can be removed by the account owner at any time.

REQUIREMENT

The standard form for designating a convenience signer was updated to include specific numbered points clarifying that the signer does not own the money and has no right to it if an owner dies.

The authority of a convenience signer was clarified to be subordinate to an attorney-in-fact, who now has the explicit power to remove a convenience signer designation.

A8549A → A8549B · 5 edits

MODERATE

The bill was amended to clarify that it applies only to accounts opened before the new rules took effect, rather than all existing accounts. It also updated the title to reflect a broader scope covering both joint and non-survivorship accounts, and introduced specific definitions for 'convenience signers' to distinguish them from owners with ownership rights.

Scope change

The bill's applicability was narrowed to exclude accounts modified after the effective date of previous sections, and the scope was expanded to include non-survivorship accounts under a new title.

ELIGIBILITY

Changed the applicability of the law to apply only to accounts established before the effective date of the new sections, excluding those modified afterward.

SCOPE

Updated the bill title from 'spousal joint accounts' to 'joint accounts and non-survivorship accounts' to broaden the legislative scope.

DEFINITION

Added new definitions for 'account owner,' 'convenience signer,' and 'convenience signer designation' to clarify who holds ownership versus who is authorized to transact without ownership.

Defined 'net contribution' to determine ownership interests in non-survivorship accounts based on deposits and withdrawals.

Established that a power of attorney authority takes precedence over a convenience signer's authority.

A8549 → A8549A · 3 edits

MINOR

The bill was amended to remove the specific provision for 'non-spousal joint accounts' from its title and text, while retaining the core sections for spousal and non-spousal accounts. This change clarifies that the legislation focuses on spousal relationships, as non-spousal accounts are now governed by separate, distinct rules within the same article.

Scope change

The bill's scope was narrowed by removing the explicit legislative title and introductory language for 'non-spousal joint accounts,' though the substantive legal text for non-spousal accounts remains in the body of the law.

SCOPE

Removed the phrase 'non-spousal joint accounts' from the bill's title and the committee referral note.

Revised the Act's title to list 'spousal joint accounts, non-spousal accounts, and convenience accounts' as separate categories, removing the specific 'joint' descriptor for non-spousal accounts.

TECHNICAL

Adjusted the bill number format from 'A 8549' to 'A 8549--A' and updated the explanatory page number from '02-5' to '03-5'.

Relates to joint spousal and non-spousal accounts and convenience accounts

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