Legal Question in Wills and Trusts in Massachusetts
Deceased's joint checking account with executrix
Executrix (Probate Will) was named on deceased mother's checking account in order to write checks for rent, bills, etc. during the year. This balance at the time of mother's death was approx. $30,000.
Is it ''customary'' in families for this money to be added to the other estate assets and be distributed amongst the beneficiaries even though by law the Bank may consider this the money of the executrix at the date of death of her mother? She did not disclose this checking acct. or it's balance to any of the family members when finally doing a preliminary account of assets and expenses 6 months after death.
What is the most common procedure? Add large checking account balance (intended for several months of rent and incidental expensed) to the Estate Assets?, or allow the executrix to keep the money for herself?
In my family, my brother, the executor, with his name on my mother's accounts added her money to the estate to be divided amongst the children.
This included savings and checking accounts. I also know of another situation that was handled the way my brother did.
What is customary? Is the executrix being greedy by following through on a law that most families choose not to in cases of large $ amounts?
2 Answers from Attorneys
Re: Deceased's joint checking account with executrix
Generally, a bank is within its rights to let a surviving joint owner withdraw money from a joint bank account. As far as what is "customary," it depends upon what the decedent intended, and what the joint owner agreed to. In some cases, it may be treated as a gift to the surviving joint owner, and in others, remuneration for services (and it could also anticipate many years of such services.)
For estate planning purposes, it is important to clarify intent, prior to death.
There is considerable case law on the topic of joint bank accounts, and it revolves around the intent and capacity of the decedent-owner.
One could easily spend a signficant chunk, if not all, of that amount in pursuing the matter. It is also possible to challenge an Executrix' account.
It would probably make sense to contact an attorney if there are issues, but there is no "hard and fast" answer absent knowledge of the decedent's true intent.
Re: Deceased's joint checking account with executrix
Frequently families do handle the funds the way you have suggested, but this is not required. It depends on the relationshsip among family members. Without any agreement among family members as to how to deal with joint funds, joint ownership of an account generally results in the funds going to the surviving owner upon the death of the other. This can be challenged by heirs if there is proof that the account was made joint solely for the convenience of the decedent or that the decedent lacked sufficient capacity or was unduly influenced to make the account joint. A challenge of this kind would be expensive and time-consuming.
Without knowing all the facts of the case, I could not advise you on the steps you (or your loved one) should take. However, I do suggest that my clients first address the issue directly with the executrix. You (or your loved one) may want to aproach the executrix, with other family members if they also agree, and talk about what the mother's wishes were, and hear her point of view. There may have been an agreement with mom that she would get the "extra" money based on her extra support of mom, or whatever. In addition, an executrix is entitled to some fee for her services as executrix.
Please let me know if I can assist you. Good luck.
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