Right of Survivorship

[jjanovich]

What is the name of your state? PA

Hello. I have a question about Right of Survivorship.

My father and I had a joint bank account with Right of Survivorship that was setup 5 years ago. He passed away.

Would the remaining money in the account be all mine or would it go into his estate?

I have been told be his attorney they I get half and half goes to the estate, while I have had 4 other lawyers tell me since it had a Right of Survivorship, I would get all of it.

Also, afer he passed, I paid $8,000.00 for his 2006 Income Tax return. If I would only get 50% like his lawyer said, would the $8,000 be ignored or would it come from the 50% left to the estate...or am I entitled to 50% that was in the account the day he died.

Any help would be appreciated.

Jim

 

[anteater]

This is from Title 20 (the Probate Code) of the PA Statutes:

§ 6301. Definitions.

The following words and phrases when used in this chapter shall have, unless the context clearly indicates otherwise, the meanings given to them in this section:

"Account" means a contract of deposit of funds between a depositor and a financial institution, and includes a checking account, savings account, certificate of deposit, share account and other like arrangements**************....

"Financial institution" means any organization authorized to do business under State or Federal laws relating to financial institutions, including, without limitation, banks and trust companies, savings banks, building and loan associations, savings and loan companies or associations and credit unions.

"Joint account" means an account payable on request to one or more of two or more parties whether or not mention is made of any right of survivorship**************....


§ 6304. Right of survivorship.

(a) Joint account. - Any sum remaining on deposit at the death of a party to a joint account belongs to the surviving party or parties as against the estate of the decedent unless there is clear and convincing evidence of a different intent at the time the account is created. If there are two or more surviving parties, their respective ownerships during lifetime shall be in proportion to their previous ownership interests under section 6303 (relating to ownership during lifetime) augmented by an equal per capita share for each survivor of any interest the decedent may have owned in the account immediately before his death; and the right of survivorship continues between the surviving parties.


In other words, it would be the task of the estate attorney to present "....clear and convincing evidence of a different intent at the time the account is created."

 

[Dandy Don]

How much money is in the account? Who hired the estate attorney?

Discreetly ask the estate attorney to cite the exact law (if there is such a law) that supports his side of the story. He most likely won't be able to do that and will give you some type of excuse. He is not being completely truthful to you because he can claim a bigger executor fee from any money that goes to the estate.

The money is yours unless the estate attorney has documented evidence showing the money was intended to go to someone else!!

You need to seriously consider hiring your own attorney to provide an objection (while the estate is currently being probated--don't wait until probate is over) to the way he is handling this in probate court if he won't assure you NOW that the check will be issued 100% to you.

DANDY DON IN OKLAHOMA ([email protected])

 

[lwpat]

The estate should have paid the taxes. You can file a claim against the estate. Sounds like the attorney either is deliberately misleading you or is incompetent.

 

[anteater]

The estate should have paid the taxes. You can file a claim against the estate. Sounds like the attorney either is deliberately misleading you or is incompetent.

I vote for incompetent.

There is the possibility that the estate attorney is confusing the question of transfer of jointly-held property with the PA Inheritance Tax treatment. PA Inheritance Tax is somewhat quirky. It does not delve into relative contributions to determine relative ownership interests and how much is subject to tax. As long as the person creating the joint ownership interest(s) survives for a year after doing so, PA Inheritance Tax law treats all joint owners as having a proportional ownership interest. Therefore, only 50% of the OP's deceased father's account would be subject to PA inheritance tax.

§ 2108. Joint tenancy

(a) When any property is held in the names of two or more persons or is deposited in a financial institution in the names of two or more persons so that, upon the death of one of them, the survivor or survivors have a right to the immediate ownership or possession and enjoyment of the whole property, the accrual of such right, upon the death of one of them shall be deemed a transfer subject to tax of a fractional portion of such property to be determined by dividing the value of the whole property by the number of joint tenants in existence immediately preceding the death of the deceased joint tenant.

(b) Except as provided in subsection (c), this section shall not apply to property or interests in property passing by right of survivorship to the survivor of husband and wife.

(c) If the co-ownership was created within one year prior to the death of the co-tenant, the entire interest transferred shall be subject to tax only under, and to the extent stated in, subsection (c)(3) of section 2107 as though a part of the estate of the person who created the co-ownership.