MS HB222

Banks must provide written information to account holders before adding another person to an account, explaining that upon the account holder's death, funds pass to surviving account holders rather than through the deceased's will or to heirs at law.

The required information must be printed in large, bold print on the form used to add account holders, and a bank employee must read it aloud to the account holder before they sign.

Account holders must acknowledge receipt of this information with their signature before additional persons can be added to the account.

Banks may pay up to $12,500 from a deceased depositor's account to a designated successor without administration, with priority given to spouse, then custodial adult of minor children, then adult child, then parent, then adult sibling.

The act takes effect July 1, 2010.