Legal Question in Wills and Trusts in Alabama
Tod
Prior to my mother's death, I had general POA over an investment account with TOD that was in her name. Prior to her death I withdrew funds in order to cover her needs and final expenses. About half of the money withdrawn was spent. My brother, as executor, states he is refusing to distribute the funds from her estate until I agree to repay the money I had remaining from my withdrawal as POA. The money that remained in her investment account was distributed according to her wishes prior to the will being filed with the probate court. As executor, does he have the right to withhold the estate monies pending an agreement from me to repay money I lawfully withdrew prior to her death? I see these as two legal entities - her estate and an account with a TOD. As I see it, these are two seperate and distinct matters and , if he feels I owe this money back, will have to persue legal action as it is not related to her will or estate.
1 Answer from Attorneys
Re: Tod
You have asked a good question, an interesting question.
There is no doubt that the money in the account would pass under the terms of the TOD designation, and I believe you indicated that it did pass that way. The real question is the character of the money that had been withdrawn from the TOD account. Did that withdrawn money still have the TOD restriction on it, even though it had been withdrawn? Did that money change character so that it became a part of her regular estate and should therefore pass in accordance with her will? I think that is the question you are asking.
In my opinion the withdrawn money was no longer restricted by the TOD designation. The cash that you had withdrawn became part of her estate the same as any other asset and should therefore pass in accordance with her will. If you had re-deposited the funds into the account, it would have passed as a TOD but since you did not re-deposit the funds, they became part of her estate and fell under the provisions of her will.
Please be advised that any answer you receive here should not be considered the final word on any matter as all the facts are not available to the person answering your question. My answer as well as any others you receive are general answers pointing you in a general direction. If you want definitive answers, you will need to secure the services of an attorney so he/she can do the necessary research.
Best of luck.
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