Multiple-party accounts.

The California Multiple-Party Accounts Law regulates the ownership interest of parties to a multiple-party account, and provides that during the lifetime of the parties, a party's ownership interest is based on the proportion of the party's net contribution to the sums on deposit. This bill instead would base a party's ownership interest in the account on the proportion of the party's net contributions to the account. The bill would specify that if a party makes an excess withdrawal, as defined, from an account, the other parties to the account shall have an ownership interest in the excess withdrawal in proportion to the net contributions of each to the amount on deposit in the account immediately following the excess withdrawal, unless there is clear and convincing evidence of a contrary agreement between the parties. The bill would define excess withdrawal as the amount of a party's withdrawal that exceeds that party's net contribution on deposit in the account immediately preceding the withdrawal. The bill would also provide that only a living party, or a conservator, guardian, or agent acting on behalf of a living party, shall be permitted to make a claim to recover the living party's ownership interest in an excess withdrawal pursuant to the provisions above. However, the bill would authorize a court, at its discretion, and in the interest of justice, to reduce any recovery under the provisions above to reflect funds withdrawn and applied for the benefit of the claiming party. Existing law provides that rights of survivorship are eliminated for funds withdrawn by a party with a right of withdrawal during the lifetime of the party. This bill instead would eliminate those rights of survivorship with respect to funds withdrawn to the extent of the withdrawing party's net contribution to the account. The bill would also make conforming changes.