Multiple-Party Account Law and Legal Definition
A multiple-party account means an account having more than one owner. A multiple-party account is owned by parties in proportion to their net contributions during the lifetime of all parties. Since a multiple party account is functionally equivalent to a will, they are considered as a type of will substitute. But in a multiple party account, the assets are transferred to the beneficiary within the donee’s lifetime. Each owner of a multiple-party account will have a current interest in the account. A multiple-party account can be any of the following accounts:
(1) a joint account; or
(2) a P.O.D account; or
(3) a trust account.
A multiple-party account does not include an account established under a partnership, a joint venture, or by an association for a business purpose. It also does not include an account controlled by two or more persons as the duly authorized agent or trustee of a corporation or unincorporated association, charitable, or civic organization.
The following is an example of a federal statute defining the term multiple-party account. According to 8-A M.R.S. § 6-101, (5) a "multiple-party account" is any of the following types of accounts:
(i) a joint account;
(ii) a P.O.D. account; or
(iii) a trust account.
It does not include accounts established for the deposit of funds of a partnership, joint venture, or other association for business purposes, or accounts controlled by one or more persons as the duly authorized agent or trustee for a corporation, unincorporated association, charitable or civic organization or a regular fiduciary or trust account where the relationship is established other than by deposit agreement.
