Need help with granny's will

[granny'sgirl]

I live in West Virginia, and my grandmother died 2 weeks ago. She has a legal will, my mother is executor. We have filed the will at the court house. She has two properties that have to be sold and divided. She had some money in the bank about 6 months before she died that she had my mother and her sister put in an account without my granny's name on the account. They are four children, 8 grandchildren. She has it in the will how to divide the money. Everyone is in ageement with the will. Here is the problem....About 2 yrs ago, my uncle that lived at home with my grandmother, was in a car accident. We just found out he is being sued. The auto insurance was in my grandmother's name, so she is named in the law suit. Although she was never served any papers on the law suit. No accounts or funds have been frozen. My question is, can there be trouble where the accounts had been transferred earlier, even though no knowledge of the law suit? Can my mother as executor be held accountable? Or can she go ahead and divide the monies like the will states?

 

[ALawyer]

This is a tough one, and if she pays out money and the estate is later held liable, mom is personally liable for the value that was in the estate.

One approach is to get apromise from the others to repay the estate IF the esate is held liable. And in light of the complications, get advice from a V lawyer.

 

[advisor10]

12-21-2001

DEAR GRANNYSGIRL:

I don't think you have much to be concerned about, but you should speak to a local attorney to find out for sure. It would seem that your grandmother's name in the lawsuit is only a formality. The insurance company also should have been named since they are the ones who will be paying the claim.

Regarding the bank account money, how much is in there? Your mother needs to go to the bank to look at the bank account card to see if your mother or her sister were named as specific beneficiaries of this account--it is possible that as co-signors or co-owners of that account, under the concept of joint tenancy with right of survivorship, the ownership of the account transfers automatically to one of them at the exact point of your grandmother's death, and the money would not have to go through probate. If the bank decides that the account papers show that your mother and her sister are not beneficiaries, then the money would go to the estate, which your mother would have control of as executor.

However, she can NOT distribute this money yet. If your grandmother has any unpaid bills or funeral expenses and/or income taxes, these must be paid first, and then the money is divided among the heirs with what is left over after the bills are paid, no matter what the will says.

SINCERELY,

advisor

 

[granny'sgirl]

Thank you for replying. There is aproximately $60,000 in the accounts. My mom and her sister were both on the accounts also. The funeral bills have been paid, and they have money set aside for any outstanding bills. Thank you again.

 

[advisor10]

12-26-2001

DEAR GRANNY'S GIRL:

I would like to correct my posting to you. You really need to double check with the insurance company that your grandmother had a policy with to see if her coverage extends in this case. If it does not extend to cover your uncle or if he does not have his own insurance, then the estate may be liable and you may need to set aside some of the $60K to cover the estate liability in the lawsuit.

 

[granny'sgirl]

He is named as secondary driver of her vehicles on her policy. I think they were told that they would be liable to pay anything over the insurance coverage. Thank you again!