Estate Planning

‘Banking Convenience Account for Depositors Act’ Goes Into Effect January 1, 2010

Public Act 96-0123, the Banking Convenience Account for Depositors Act, goes into effect January 1, 2010 to allow a customer to open an account known as a “convenience” account, with the “primary account owner” being designated as the “depositor,” and the secondary owner being designated as the “convenience depositor.” Both parties may deposit funds into the account or withdraw funds from the account, but upon the death of primary depositor, there is no right of survivorship; all funds shall be deemed to have been deposited by the “depositor.” This law is intended to address unintended results such as when a child becomes the sole owner of an account that the child held in joint tenancy with a parent, even though the parent had only placed the child’s name on the joint bank account so that the child can pay the parent’s bills and have access in case the parent becomes ill.  The law has a built-in repeal provision as of five years after enactment.