ownership status of mutual fund JTWROS

[jlynn432]

What is the name of your state (only U.S. law)? DC

Hi. My former girlfriend and I had set up a mutual fund account as joint tenants with right of survivorship. We went our separate ways a decade ago. I just learned that the account still exists, in both of our names as JTWROS, and the statements have been going to the address of her attorney who's been dead for 7 years. When we separated we signed a written agreement about splitting our assets. I no longer have a copy of it and I don't remember whether that was even addressed in it or not. My question is, if that agreement said that the entirety of the account was hers, but we never officially changed ownership with the mutual fund company, would that actually be binding? Would it supercede the mutual fund company's terms of ownership? I guess what I'm asking is, do I have any right to the funds in the account? Thanks in advance.

 

[Hot Topic]

What is the name of your state (only U.S. law)? DC

Hi. My former girlfriend and I had set up a mutual fund account as joint tenants with right of survivorship. We went our separate ways a decade ago. I just learned that the account still exists, in both of our names as JTWROS, and the statements have been going to the address of her attorney who's been dead for 7 years. When we separated we signed a written agreement about splitting our assets. I no longer have a copy of it and I don't remember whether that was even addressed in it or not. My question is, if that agreement said that the entirety of the account was hers, but we never officially changed ownership with the mutual fund company, would that actually be binding? Would it supercede the mutual fund company's terms of ownership? I guess what I'm asking is, do I have any right to the funds in the account? Thanks in advance.

Have you contacted "the mutual fund company," and if not, why not?

 

[mistoffolees]

What is the name of your state (only U.S. law)? DC

Hi. My former girlfriend and I had set up a mutual fund account as joint tenants with right of survivorship. We went our separate ways a decade ago. I just learned that the account still exists, in both of our names as JTWROS, and the statements have been going to the address of her attorney who's been dead for 7 years. When we separated we signed a written agreement about splitting our assets. I no longer have a copy of it and I don't remember whether that was even addressed in it or not. My question is, if that agreement said that the entirety of the account was hers, but we never officially changed ownership with the mutual fund company, would that actually be binding? Would it supercede the mutual fund company's terms of ownership? I guess what I'm asking is, do I have any right to the funds in the account? Thanks in advance.

Since you were not married, there are no marital issues involved and the court would not have any standard way to divide the asset. It therefore comes down to contract law. If you both signed an agreement on how that asset would be divided, then that agreement is binding - and enforceable. It would supersede the mutual fund company's terms of ownership (not directly, but indirectly).

The way it would play out is this. Let's say that in the separation agreement, you agreed that your ex-gf would be entitled to all of the account. The mutual fund company is not a party to that agreement, so they would continue to go by their rules - which state that since you are joint owners, you could withdraw the money. HOWEVER, your ex could then sue you for violating the contract between you and her - and collect not only the money you took, but also legal fees and any other expenses.

One minor issue that should be easy to resolve. Let's say that you did agree to give her the money in the account. In order to do that, you would be required to sign a document with the mutual fund company relinquishing your share of the account and asking for it to be transferred to her name (although the easiest thing would be for her to simply transfer all the assets to an account solely in her name). So, even if the agreement doesn't specifically say that you'll sign a form, you might have to.

Bottom line is that the agreement you signed is a contract and is as binding as any other contract. Unless she held a gun to your head and made you sign it, you have to follow it. So you'd better find a copy or ask her for a copy of the contract before you do anything.