Legal Question in Wills and Trusts in New Jersey

''unpaid loan due to the survivor of a joint account''

My mother's aunt set up a bank account (X name or Y name), the Y being my mother. In her last years, my aunt's brother and later sister-in-law took over her affairs (Personal Representative). The loans were never paid back to the joint account. Can my mother demand repayment of these monies as the surviving owner of the account? The account was opened in a NJ bank where the aunt used to live. The aunt was moved to FLA, where she died. The balance of these funds were transfered by the bank to my mother. My mother lives in PA. The account didn't say JTWROS.

Thanks


Asked on 9/27/07, 2:28 pm

1 Answer from Attorneys
Mitchell Roth MW Roth, Professional Law Corporation

Re: ''unpaid loan due to the survivor of a joint account''

Probably not. It does not appear that the money in the account was ever intended to be a gift to your mom, but rather a will substitute. Therefore she gained no ownership interest in the funds until your aunt died.

That being said, if her brother used his sister's funds for his own use while she was unable to manage her own affairs, the personal representative of the estate (in probate) should pursue collection of the debt. Of course, if the brother is the only heir, then no one lost a dime, unless there were unpaid debts when your aunt died.

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Answered on 9/27/07, 5:12 pm


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