Trust Accounts/No Wil

[jd7]

What is the name of your state? Illinois

Can a Representative of an estate petition or force funds from trust accounts titled as such (please see below) and enter them in as part of the estate in probate?

* notes: Deaseaced = estate being probated & blank lines representing names listed on accounts.

a.) CD opend in joint ownership, account titled as ____________ or Deceased name.

b.) CD opened in the name of deceased as trustee for (& POD to) _____________ & ______________.

Thank you in advance for you help.

 

[seniorjudge]

What is the name of your state? Illinois

Can a Representative of an estate petition or force funds from trust accounts titled as such (please see below) and enter them in as part of the estate in probate?

* notes: Deaseaced = estate being probated & blank lines representing names listed on accounts.

a.) CD opend in joint ownership, account titled as ____________ or Deceased name.

b.) CD opened in the name of deceased as trustee for (& POD to) _____________ & ______________.

Thank you in advance for you help.

a: no

b: CD opened in the name of deceased as trustee for (& POD to) [This is contradictory and makes no sense; doublecheck that one and get back to us.]

 

[jd7]

Trusts Accounts /No Will

This information comes from a Petition being filed by the Special Administrator
of The Deceased who died intestate.
It is a Petition for Issusance Of Citations In Discovery
The verbiage from the petition is as follows:
on said date, the Decedent opened said CD in her individual name, as Trustee for(and payable on death to) __________and ___________
The only info I left out was the actual date and the names.
Thanks again, and any info will be appreciated.

 

[seniorjudge]

This information comes from a Petition being filed by the Special Administrator
of The Deceased who died intestate.
It is a Petition for Issusance Of Citations In Discovery
The verbiage from the petition is as follows:
on said date, the Decedent opened said CD in her individual name, as Trustee for(and payable on death to) __________and ___________
The only info I left out was the actual date and the names.
Thanks again, and any info will be appreciated.

Check with whoever issued the CD to make sure that language is correct.

With the few facts you have given, I will make a guess and say it sounds like that the decedent bought a CD with the decedent acting as trustee for whoever and when decedent died, the CD went to whoever.

This sounds strange to me; as I said, ask the institution who issued the CD.

 

[jd7]

Trust Accounts/No Will

Thanks for your reply!
Unfortunately I have no other information. I am an Heir of the decedent along with the 2 that were named on accounts. I have no problem with them receiving the funds. It is the other numerous Heirs that are disgruntled. I am trying to help them gather information because basically they are being sued now. They do intend to hire their own attorney. I just thought I could get some information here before they go to see an attorney, which I was asked to go with them.
Thanks again.

 

[Dandy Don]

Heirs are being sued by whom (the special administrator, perhaps?) and why?

If the heirs know the name and address of the bank that is holding the CD's, then the heirs need to contact the bank now and claim the CD money--it is theirs!! POD means payable on death to the named party (without going through probate) and since the joint ownership CD has one party's name on it, that is payable to that party as well and NOT to the deceased.

PR has no business claiming these for the estate although he/she may be ignorant of the law.

After they get their money, please ask them to send me a nice donation for the value of my advice!!

The problem here is that we don't know whether the decedent ever officially set up a trust or not. At some point, the heirs or their attorney will need to ask PR if a trust document exists, and if they are named as beneficiaries, they need to request a copy of the trust from the trustee. But it looks like here that the decedent intended to set up a trust (and therefore she should have put one or both of the CD's in the trust), but apparently she neglected to do that.

After an attorney has reviewed all of the evidence, it may be to the heirs advantage to get whatever the problems/misunderstandings causing the lawsuit are to be cleared up/negotiated without having to go to court, since that could be very costly to both sides in legal fees.

DANDY DON IN OKLAHOMA ([email protected])

 

[jd7]

Trusts Accounts/No Will

This is for Dandy Don. Thanks for your reply.
The Decedent is my mom. Actually it is the 2 named beneficiaries on the account (b) that are being sued because they apparently collected the funds.
Account (a) actually belonged to the first named on the account. He was paying taxes under his SS#, this account was set up for him through a school work coordinator. They are the ones that opened it with him and my mom as owners.
Thanks again for all replies!!

 

[candg918]

My experience as executor/trustee

My experience may help the OP understand problems facing the estate administrator.

The POD accounts went/should go directly to the named beneficiaries from the financial institutions. Since I must complete the estate tax returns, I need to have the information on assets that do not go to the "estate" but are part of the "taxable estate" so the assets are properly listed for the tax commission forms.

It is reasonable that the financial institution provide the administrator/trustee/successor trustee/executor - whoever is completing the estate tax paperwork - with documentation on the accounts so that the accounts can be cleared even though the payment is not to the estate. In this state, the account has a 10% hold until the estate tax paperwork is processed and approved. The beneficiaries of the POD accounts cannot receive the entire amount until the paperwork is completed.

One out-of-state financial institution did not want to distribute any of the funds without the release and has a hold on all of the funds in the account. As successor trustee, I can redistribute funds in the account but not withdraw any. Even the income payments that my mother was receiving have been stopped and redirected to the default accumulating investment option.

My point is that information about the POD accounts is required in order to process the tax estate even though they are not part of the probate estate.


Dandy Don,

Do you not agree that an interesting question for the OP to investigate is how any taxes due because of the amounts in the POD accounts will be paid? The person with fiduciary responsibility for the estate may be trying to apportion taxes to the POD accounts.

 

[Dandy Don]

Yes, candg918, your comments were most informative. But if the goal was only to apportion tax liability, that could be done informally without a lawsuit.

 

[candg918]

Dandy Don,

I agree that a lawsuit to solve this problem is excessive. Unfortunately for the OP, settling as estate seems to bring out the family rivalries. A retired legal professional could have a great part time career mediating disputes such as this. There are mediators for divorce and child custody/support issues, but I have never seen ones for estates. If there is such an organization, could you please post a link to it. Thanks!

OP,

My advice, get a hard hat and practice ducking! Good luck!

C.


PS. My father-in-law says his will is "Being of sound mind, I spent it all."