Legal Question in Wills and Trusts in California
will vs joint account
When my friend of 50 years started getting forgetful, as an estate plan he decided to close his bank accounts and open a joint checking/saving accounts ($70,000) in his name, mine and that of a distant cousin. As intended, his cousin and I use the accounts to pay Joe's expenses, when he dies we are to pay final expenses and split the balance.
Joe is a widower, no children, mostly estranged brother, sister, nephews, etc back east. Last year Joe became bedridden and diagnosed with dementia. Cousin and I share the caretaking without getting paid.
Joe owns a trailer & few personal belongings all in disrepair, he lives alone. No car, jewlery, stocks, nothing of value and of course if he goes into a nursing home this question will be moot in less than 6 months!
Cousin now convinced Joe to ''update'' his will? other than things along the lines of ''dogs playing poker'' and the trailer there is nothing to put in a will! Is cousin planning to fund the will with those joint accounts? we have equal right to withdraw the money. Do joint accounts pass outside of a will? how do I protect my interest? what pitfals can I face for being a good samaritan by taking care of Joe's finances, medical care, home and Joe himself?
2 Answers from Attorneys
Re: will vs joint account
This whole deal is improper. The joint account you describe is a gift to you and the cousin, now. Not when Joe dies. If either you or the cousin incur liability, your creditors can reach the funds in the account. This is a mess. And I really can't make any recommendation that will make the picture better because Joe is not incompentent. Therefore, unable to make a will.
Re: will vs joint account
funds in a joint account are presumed to belong to the survivor. the presumption can be rebutted. your risk is that cousin will argue that the money in that account was always Joe's and thus it should be part of the estate. you might want Joe to enter an agreement that you are to receive the money in that joint account in exchange for the services you are providing him. you really should consult with an attorney to make sure it is done right.
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