Legal Question in Wills and Trusts in Illinois
Estate Dispute - Checking Account
When our father died, his five daughters were heir to his estate to be divided equally, five ways. One of the daughters, residing in his home, was a joint partner on my dad's checking account at time of his death. It is our understanding that this was for purpose of convenience in her paying his regular and everyday living expenses, receive deposits of his income, etc. The account contained a substantial amount (14,000) We are asking that this money be used to pay funeral expenses, estate legal expenses, property tax, homeowner insurance, etc. At the time of my Dad's death, she claimed "some" of her own money was mixed in the account. We asked her to show how much was hers, but she has refused to do so. Instead, she insists because it was a joint account, the money is totally hers and the estate expenses need to be deducted from the total value of the estate at time of disbursement. She is executor. Can she be required to use the money in this joint checking account for those estate expenses? We need a speedy answer. Thank you.
3 Answers from Attorneys
Re: Estate Dispute - Checking Account
the money is likely hers but the laws differ in every state and we dont know what state you are in.
Re: Estate Dispute - Checking Account
I'm an attorney in Illinois, Ohio, and CA and find the law is almost universal with regard to joint accounts. It is presumed to be a gift at the time of withdrawal or death, however if it can be shown that it was intended to be a convenience account only then the joint tenancy may be set aside. The problem is that you have the burden of proof and without showing the intent of the decedent it would be difficult. Also, if it is true that her money got comingled or she contributed to the account, that would even make it more difficult, The practical side of it is that it might take enough legal fees to make your case to make it not worth while.
Re: Estate Dispute - Checking Account
The issue is whether your father intended to make a gift of all of the money in the joint checking account to your sister, the Executor, before he died. Your sister will have the burden of proving such a gift was made. If there was no gift, the money should be included in the probate estate, and should be used for payment of estate expenses and/or distributions to heirs. To learn more, please visit our website at www.labusinesslawyer.com.
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