CD Purchased From Joint Account - Who Owns It?

[Daniel M.]

What is the name of your state? WA

My Uncle and I had a Joint Checking account, his SS# was
listed for tax purposes but both are names are on the checks.

We purchased a CD directly from the checking account from
the same bank that holds the checking account.

My Uncle has passed away and now the bank is saying I have
to go to court to get the CD proceeds. Since the CD was purchased
directly (the money was electronically removed by the bank from it)
from the Joint Account (which has now been transferred solely to me)
should not the CD have been assigned the same "Joint" status with
both of us on it?

What rights do I have as a result of the CD being purchased directly
from the Joint Account. I don't want to run up large attorney fees
for a modest size CD....

Thanks for any help. Dan

 

[divgradcurl]

What is the name of your state? WA

My Uncle and I had a Joint Checking account, his SS# was
listed for tax purposes but both are names are on the checks.

We purchased a CD directly from the checking account from
the same bank that holds the checking account.

My Uncle has passed away and now the bank is saying I have
to go to court to get the CD proceeds. Since the CD was purchased
directly (the money was electronically removed by the bank from it)
from the Joint Account (which has now been transferred solely to me)
should not the CD have been assigned the same "Joint" status with
both of us on it?

What rights do I have as a result of the CD being purchased directly
from the Joint Account. I don't want to run up large attorney fees
for a modest size CD....

Thanks for any help. Dan

How is the checking account set up? If it is set up as Uncle AND you, well, then the bank wants to see both signatures before they can release the funds. If it is set up as Uncle OR you, then there shouldn't be any reason why the bank should be holding up payment.

EXCEPT -- the CD, even though jointly owned by you and your Uncle, is almost certainly an asset that is part of your Uncle's estate, and as such cannot be distributed to anyone until probate is completed. Unless your uncle willed his interest in the CD to you, you may have to share ownership of the CD with other heirs.

If the CD was held in jointly with rights of survivorship, then you would get the whole CD free and clear -- but the bank still might want evidence of your uncle's death.

 

[Daniel M.]

How is the checking account set up? If it is set up as Uncle AND you, well, then the bank wants to see both signatures before they can release the funds. If it is set up as Uncle OR you, then there shouldn't be any reason why the bank should be holding up payment.

EXCEPT -- the CD, even though jointly owned by you and your Uncle, is almost certainly an asset that is part of your Uncle's estate, and as such cannot be distributed to anyone until probate is completed. Unless your uncle willed his interest in the CD to you, you may have to share ownership of the CD with other heirs.

If the CD was held in jointly with rights of survivorship, then you would get the whole CD free and clear -- but the bank still might want evidence of your uncle's death.

There is no question on the checking account - that was joint with rights of survivorship and I have access to it - the crux of the question is since we purchased the CD directly from this checking account (electronically withdrawn by the same bank as the checking account) shouldn't it also have been put as joint with ROS as well and not just in my Uncle's name alone which would require court action to dispense with?

Thanks for your reply - Dan

 

[Dandy Don]

The joint names/status on checking account IS a factor in your favor, but it is not the whole story.

When the CD was purchased, someone (was it you or your uncle?) had to fill out paperwork, furnished by the bank, for the CD. Was a beneficiary for the CD chosen at that time or not? Did both of you fill out the paperwork or did just your uncle do it? What is the amount of the CD? Has the maturity date been reached yet or not? What is the maturity date?

If no beneficiary was designated, then it does belong to the estate, but you could ask the bank to have their attorneys review this and see if the decision would work out in your favor.

Even if it does go to probate, these estate assets are so simple that you wouldn't need to hire an attorney to do it--you could do it yourself, but preferably hiring an attorney just for consultation purposes only to make sure you were proceeding and doing everything correctly.

DANDY DON IN OKLAHOMA ([email protected])

 

[Daniel M.]

The joint names/status on checking account IS a factor in your favor, but it is not the whole story.

When the CD was purchased, someone (was it you or your uncle?) had to fill out paperwork, furnished by the bank, for the CD. Was a beneficiary for the CD chosen at that time or not? Did both of you fill out the paperwork or did just your uncle do it? What is the amount of the CD? Has the maturity date been reached yet or not? What is the maturity date?

If no beneficiary was designated, then it does belong to the estate, but you could ask the bank to have their attorneys review this and see if the decision would work out in your favor.

Even if it does go to probate, these estate assets are so simple that you wouldn't need to hire an attorney to do it--you could do it yourself, but preferably hiring an attorney just for consultation purposes only to make sure you were proceeding and doing everything correctly.

DANDY DON IN OKLAHOMA ([email protected])

Hi Dandy,

I filled out the "paperwork" over the internet. The CD is for 20K, it matures in about 18 months. I can't remember if a beneficiary was stated or not it may not have been as I would have been figuring it was JROS and would belong to me.

This CD would be the only item in my Uncle's estate and assuming it went to court would it have to be sold or would they just transfer it to the heir?

Also could you shed a bit of light on how the probate situation might transpire for just this one asset.

Thanks much!

 

[Dandy Don]

Is this bank located in a different city or state from where you live?

Are you saying that the bank never contacted you by mail or by phone to let you know the status of the CD or to get any other information from you?

Are you saying that your uncle never signed anything on the paperwork regarding the CD at any time?

Did the both of you open up the joint checking account or did just one person do that?

Please mention the name of the bank and what city/state they are in and their website if you know it. Depending upon the name of the bank I can refer you to the name of a bank examiner who can investigate this for you. There may be some things you can do to keep this from going into probate.

DANDY DON IN OKLAHOMA ([email protected])