Legal Question in Wills and Trusts in Ohio

Re: checking and savings account

The facts you describe can raise many issues and problems. If sister-in-law "is on" the account as a joint owner with mom and dad, in effect she has complete access to all the money in the account right now, and she could withdraw every penny without the approval of anyone else. Also, upon the death of mom and dad, sister-in-law would be the surviving joint tenant and would own any remaining balance in the account. The account balance would not pass according to a Last Will and Testament.

Although people do this routinely, normally to accomplish access in case of emergency, or to accomplish oversight of the account such as you are describing, I strongly advise my clients against placing a child or similar person on their bank accounts as joint owners. Why -- because, the potential for problems is quite high. If sister-in-law is dishonest, mom and dad's money can be affected. If sister-in-law has money problems, mom and dad's money can be affected. If sister-in-law injures someone in a car accident and a judgment in excess of her insurance coverage is taken against her, mom and dad's money can be effected. If sister-in-law gets divorced from her spouse, mom and dad's money can be affected. If sister-in law ever has to file bankruptcy, mom and dad's money can be effected. These are just some of the reasons.

Access to the account to help mom and dad, if they ever need such help, can be accomplished by mom and dad having proper estate planning and legal documents such as powers of attorney in place.

A diagnosis with Alzheimer's disease, in and of itself, will have no legal effect on the account or the level of control the sister-in-law has; however, as already stated she effectively has unfettered control over the account right now.

If a person becomes unable to manage their own affairs a guardianship can be established for them through Probate Court. Many of my clients would choose to try and avoid guardianship, which can be done with proper estate planning well ahead of time since the client must have a certain level of capacity in order to make certain decisions and sign certain legal documents.

It could be that your parents would benefit from a comprehensive review from a qualified estate planning attorney.

Please note that information provided is very general and a not intended to create an attorney-client relationship; you are advised to have your particular situation reviewed in-depth and in-person by an attorney.