Legal Question in Wills and Trusts in Michigan
trust vs jtwros
I am the trustee of late father's trust. It states it would be funded during his life by transferring assets to it, which would then make up the trust estate.
It calls for all assets to be divided equally among the children - a separate provision specifically states any joint accounts are also to be divided equally.
The joint accounts were not transferred to the trust. They were held jtwros and this adult child has gone to the bank and placed these accounts in their name.
Disgruntled siblings want the $$ returned and have retained attorney.
Do they stand a chance of having these assets returned to the estate?
Would any estate expenses paid out of the joint account be repaid to this child IF $$ has to be returned?
At the time the trust was drawn up - Dad might have thought one thing but he changed his mind and I know these joint accounts were intended by Dad to be separate assets from the trust and for the exclusive benefit of the jt owner... which is why they were not transferred to the trust - is the fact that he never made a single move to transfer title good enough or does that provision trump the jtwros designation?
I'm confused and stressed and in real need of advice.
HELP!!
1 Answer from Attorneys
Re: trust vs jtwros
Your questions raise a variety of issues. Generally speaking JTWROS assets pass to the surviving joint tenant on the death of the other joint tenant - free from any challenge. However, there have been successful challenges to such an outcome. If the distribution of your father's assets (including JTWROS assets) is challenged, then the question could ultimately be decided by a Probate Judge in the county in which your father last resided. As Trustee, you may have a duty to bring this matter before the Court simply to help assure that you have properly taken all necessary steps in administering the Trust. I suggest you gather all pertinent paperwork and outline the facts to have everything closely reviewed by an attorney to provide you with a specific opinion based on your facts. Feel free to contact my office if you feel we can help further. Thank you.
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