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Joint accounts with right of survivorship

Posted on | May 23, 2009 | 5 Comments

Joint accounts are accounts, usually with a financial institution, where more than one person has rights to the account.  Deciding what those rights are is a problem often faced in contested probate cases.

The courts look at the documents creating the account and the words used to determine the type of account involved.  Often, the financial institution will use a pre-printed form that has boxes to check.  The card will be filled out correctly but no box will be checked!  Or two conflicting boxes will be checked!  Since all accounts are presumed to be non-survivorship accounts, the burden of proof is on the person claiming that the account is a survivorship account to prove that it is.  If the boxes on the signature card are not checked, too many boxes are checked or as one jury found, checked later by someone not the owner of the account, then the account is not a survivor account.  The account would pass through the owner’s will or through his estate.

Joint accounts can cause difficulties.  The difficulties related to the type of joint account in question.  There are three basic joint accounts:

  1. convenience accounts - where one or more persons own the account but other, non-owners, are allowed to make withdrawals  On the death of the owner, the account passes through his will or through his probate estate and does not pass to the non-owner;
  2. tenants in common - where two are more persons own the account equally – when one owner dies, his share passes through his will or through his probate estate and does not pass to the other owner; and
  3. joint accounts - with or without the right of survivorship.
  • with right of survivorship means that when one of the joint owners dies, the account belongs to the survivor and does not pass through the deceased’s will or through his probate estate.
  • without right of survivorship means that the account is owned by the joint owners and when one dies, his share passes through his will or through his probate estate and does not pass to the other owner.

An example of the difficulty with joint accounts are the following cases:

  1. One case held that there was no right of survivorship even though the signature card said ” Joint accounts – with survivorship” since the language did not match that required by statute to create a survivorship account;
  2. Another case held that there was not a survivorship account because no box had been checked;
  3. Signature card said “Type of customer – joint with survivorship” held not a survivorship account; and,
  4. “Joint account – payable to either or survivor” was not a survivorship account.

As shown by the cases cited above, accounts with a substantial amount of money in them need to be scrutinized carefully to determine what type of account they are and who, therefore, owns the account.

The foregoing information is general in nature and does not apply to every fact situation. If you are concerned about inheritance laws, have an inheritance dispute, a property dispute or want information about contesting a will, we can help. Please go to our main site www.theprobate.net and use the contact form to contact us today. We would love to learn about your case and there is no fee for the initial consultation.

Copyright by Robert Ray a Texas inheritance attorney. The foregoing information is general in nature and does not apply to every fact situation. If you are concerned about inheritance laws, inheritance rights, have a family inheritance dispute, a property dispute or want information about contesting a will and need an inheritance lawyer, we can help. Please go to our main site www.theprobate.net and use the contact form to contact us today. We are Texas inheritance lawyers and would love to learn about your case and there is no fee for the initial consultation.

Comments

5 Responses to “Joint accounts with right of survivorship”

  1. Florida Probate Attorney
    April 24th, 2010 @ 12:44 am

    GREAT article. Banks should reconsider educating their employees to thoroughly explain these delicate yet significant account types. It is frustrating to have to explain these distinctions, especially in Florida, where clients find out they have to go through probate for small dollar checking and savings accounts.

  2. Crystal
    December 19th, 2011 @ 7:14 am

    Married for 15 years. All the accounts were under my husband. Upon his death, I have gone through no access to funds and he had leased the place as a one person so no place to live, medically unable to work etc. There is money in the acounts. Do I have to become homeless just because I trusted him?

    thanks

  3. Robert Ray
    December 19th, 2011 @ 8:10 am

    This blog is for information. Our main site, http://www.TheProbate.Net, has an area for asking questions.

  4. cynthia carlson
    February 12th, 2012 @ 1:46 pm

    My Mother died December 23, 2011. We had a joint with survivorship savings and checking at North Central Area Credit Union. On January 3, 2012 I called to get the checking balance they said the account was overdrawn.On December 28 they took all the funds from the accounts and applied them to a credit card.

  5. Robert Ray
    February 14th, 2012 @ 3:27 pm

    Use our main site, http://www.theprobate.net for questions.

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