Legal Question in Wills and Trusts in Washington
Gifts and joint accounts/credit cards
Given the following hypothetical situation, I have a few questions. Suppose person A and person B have a joint checking account together. They are unmarried and they do not cohabitate and no one else is on the account. Person A is the only one that has ever put money into the account and she put's $100,000 into it.
1) does this in and of itself constitute a gift from A to B?
Let's suppose that person A loans a third party, person C, $100,000. Person A tells person B to write person C a check pursuant to the loan agreement between A and C.
Now person B claims that the $100,000 was a gift to them and that person B loaned the money to person C.
Neither loan is well documented. They were handshake agreements. Person B does not have a gift letter or any other evidence to support their claim that the money was a gift.
3) How likely is it that person B's claim will be upheld?
4) What about person A's claim?
How does it change things if the instrument used to fund the loan was a credit card in person A's name only and person B was merely an authorized user of the card?
3 Answers from Attorneys
Re: Gifts and joint accounts/credit cards
Your hypothetical depends on too many unstated terms such as how the bank account was titled (and or "or"), what sort of agreement WAS in place, and what sort of "claim" is B wanting upheld. You need to see an attorney, more likely a contract law attorney. I am more estate planning and Medicaid law.
If you are putting this in the context of Medicaid law there are specific determinations regarding the joint bank accounts but it does not sound like that is your issue.
Re: Gifts and joint accounts/credit cards
It depends on a lot of issues that your question did not state. First of all, what part of this is in AR and what part is in WA? What type of account is it? Is any of the loan agreement in writing? What is C's status at this point?
I'm also unsure about this credit card. How was 100K funded by a credit card?
I'd be glad to try to provide some answers if I could get some more information.
Re: Gifts and joint accounts/credit cards
I have to agree with Mssrs. Harris and Whatley that more information is needed before an informed answer can be given to you. My first question is where was the account opened and what are the terms of the joint account? From there, I only have more questions. If you are in AR and the account was opened there, then I think you need to see an attorney in AR. If the account is in WA or perhaps one of the defendants is in WA, then it depends on who you should consult. Either way, I recommend you begin with a local AR attorney and go from there.
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