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Joint Account Holders Don’t Always Avoid Probate

December 18, 2013 by Admin

The mere fact that someone held an account jointly with a decedent doesn’t necessarily mean he will avoid probate.

Jointly Held Bank Account

While there is a statutory presumption that a right of survivorship is created when a party to a joint account dies, this presumption can be overcome with evidence showing that undue influence was used in the creation of the account, or that the account was solely for the convenience of the depositor. This was highlighted in a recent NJ appellate court case. 

In the Matter of the Estate of DeFrank, decedent Aurerlia Defarank left behind approximately $1.4 million dollars in non-joint accounts, and had joint accounts held with her daughter Diane DiDonato (defendant) totaling $259,407. Aurerlia’s other daughter, Lorraine Rubaltelli, initially lost a summary judgment to grant her a share of the joint accounts. The judgment was based on the assumption that a right of survivorship was created when Aurerlia died.

Plaintiff appealed, arguing that decedent did not intend to create a right of survivorship on the joint accounts. She proved this by highlighting evidence of an established pattern of equal treatment to the two children. This ran contrary to the assumption that the decedent intended to give one daughter more than $250,000 more than the other. There was also evidence that the jointly-held funds were used solely for the needs of the decedent, to pay her expenses and to make equal gifts to her children and grandchildren. This would indicate that the joint account was set up for convenience rather than intent to create a right of survivorship.

The appellate court ruled in favor of Plaintiff, finding the circumstantial evidence reason enough to rebut the statutory presumption of survivorship.  

 

Filed Under: ESTATE, TRUST, GUARDIANSHIP, Joint Accounts Tagged With: Court Case, Estate, Joint Account Right of Survivorship, Right of Survivorship

Choose Your Joint Account Holders Wisely

November 8, 2011 by Admin

Before adding a joint account holder to your account, it would be wise to read about this recent New Jersey case which illustrates the risks involved when adding someone, even a close family member, to your account.

In Coiro v. Wachovia, 11-cv-3587, the recently widowed Josephine Coiro added her daughter to her checking account so the money could be accessed even if she became ill or would be unable to act. In April 2010, she sold her home and deposited the proceeds of $381,272 in the account. Five days later, her daughter filed Chapter 7 bankruptcy. Even though her daughter did not include the account as an asset, Wells Fargo, which monitors bankruptcy filings, froze it.  [Read more…] about Choose Your Joint Account Holders Wisely

Filed Under: BUSINESS FORUM, Joint Accounts Tagged With: Joint Accounts

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