Legal Question in Wills and Trusts in Maryland
Asset disposed prior to death
There is a will in which the decedent's home was left to one of three adult children. Approx. one year prior to death, the home was sold and the proceeds were put in an account to be used to pay nursing home costs. The adult child who was named the beneficiary of the home is named on the account from which the nursing home costs were paid and is also the executor of the estate. How is the money remaining in the account treated in the estate? Are they outside the estate since since there is another name on the account? Since it is proceeds from the sale of the home are the remaining proceeds distributed based on the way the home was to be distributed? Or, do the proceeds follow some other guideline in the will since the home is no longer an existing asset? Any guidance will be much appreciated.
1 Answer from Attorneys
Re: Asset disposed prior to death
If the adult child is named on the account as a co-owner, he/she owns the account. If the adult child is named as a Payable On Death beneficiary, he/she owns the account. In either of these scenarios, the remaining funds do not come into the estate. However if the adult child is on the account as a Power of Attorney, Guardian or another type of fiduciary, then remaining funds do come into the estate
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