An account in an association or federal association that is a multiple-party account as defined in Section 5132 of the Probate Code is governed by Part 2 (commencing with Section 5100) of Division 5 of the Probate Code.
Savings OperationsMultiple-party Accounts
Section § 6800
This law states that if you have a multiple-party account in a certain type of financial institution, the rules that apply to that account are outlined in another set of laws found in the Probate Code, starting at Section 5100.
multiple-party account Probate Code Section 5100 financial institutions
Section § 6804
This law states that when a bank or credit union pays a survivor under certain rules outlined in the Probate Code, they are not responsible for paying any estate, inheritance, or succession taxes that the state might require.
No association or federal association paying any survivor in accordance with Part 2 (commencing with Section 5100) of Division 5 of the Probate Code shall, because of the payment, be liable for any estate, inheritance, or succession taxes that may be due this state.
survivor payments bank liability credit union liability
Section § 6805
This law states that if one or more people who have access to a joint bank account, either as minors or adults, pledge or offer part of the account as security to a bank or federal bank, it is considered a legitimate transfer. The only exception is if the account's terms specify otherwise. This action does not end or split the ownership of the rest of the account.
The pledge or hypothecation to any association or federal association of all or part of a multiple party account, as defined in Section 5132 of the Probate Code, signed by any one or more tenants, whether minor or adult, upon whose signature or signatures withdrawals may be made from the account shall, unless the terms of the account provide specifically to the contrary, be a valid pledge and transfer to the association or federal association of that part of the account pledged or hypothecated, and shall not operate to sever or terminate all or any part of the account.
joint bank account pledge hypothecation
