NC H686

Authorizes natural persons to establish Payable on Death (POD) accounts at banks, savings and loans, savings banks, and credit unions by executing a written agreement naming one or more beneficiaries.

Permits account owners to change beneficiaries at any time during their lifetime through written direction to the financial institution, and allows owners to withdraw funds freely.

Allows a single non-natural person entity (such as a nonprofit organization or business) to be named as the sole beneficiary of a POD account; multiple beneficiaries are permitted only if they are natural persons.

Upon the account owner's death, funds pass directly to designated beneficiaries outside of probate, though personal representatives retain limited collection rights; if a beneficiary is a minor, funds transfer to their guardian or are held in trust until they reach legal age.

Effective October 1, 2011, and applies only to agreements executed on or after that date; prior agreements remain governed by existing law.