Legal Question in Wills and Trusts in New Jersey

Joint Act-death-NJ

HiHi,

If you have a joint bank account with someone in NJ and one person dies, what happens to the balance? I assumed it went to the other owner, but am being told different things by different banks. I have the death certificate and all identification needed.

This money is not mentioned in the will at all, and the person that died told us that it fell outside of the estate. The banks are saying it is outside the estate, but can't be given to the other person until waivers are done. Each has told me they need different waivers.

Any info would truly help.

Thank you.

Mollie


Asked on 5/26/06, 8:34 am

1 Answer from Attorneys
Jonathan Chester The Law Office of Jonathan S. Chester, Esq., LLC

Re: Joint Act-death-NJ

Generally speaking, a joint bank account (with right of survivorship) passes to the surviving joint owner on the first death. It is "outside" the PROBATE estate (does not pass under the will), but it is not outside the TAXABLE estate...and taxes may be payable from this account.

If there are non "class A" beneficiaries (i.e. beneficiaries who are not parents, spouse or decendants of the decedent) then a NJ Inheritance tax will be payable and a tax waiver is needed in order to release the inheritance tax lien on the account before it can be transferred to the surviving joint owner. That can take several months.

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Answered on 5/26/06, 8:54 am


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