The A B Cs of Joint Bank Accounts

Joint Bank Accounts

One might think that the general topic of “bank account ownership” is easy to understand and that forms of bank account ownership are understood by the general public and by bankers. But mistakes are made all the time. To begin with, some accounts were set up by bankers and customers decades ago. The accounts were written out by hand. Some of them listed two names only, some of them listed two names as “Joint Tenants” and others listed two names as “Joint Tenants with right of survivorship.”

The above designations can cause problems when an owner dies or loses capacity.

It bears repeating that if you have a will, the will should address joint accounts. The usual clauses are a “true joint account clause” or an “account of convenience clause.” The former makes clear that your joint accounts were intended to go to the surviving joint tenant. The latter states that your joint accounts were intended as a convenience with the intention that the funds be added to your estate.

A person’s wishes can be thwarted during or after death. In a recent case the bank account was designated as “Joint”. The bank record did not say “with right of survivorship.” The daughter wanted to retain the funds. Her siblings challenged her. The Supreme Court agreed with her siblings. The decedent may have intended that her daughter receive the funds but she did not write “with right of survivorship.”

The moral of the story is: Check every account and be sure that your intention regarding ownership has been properly designated. This problem comes up regularly and it causes family feuds more often than you would think.

In a facetiously written 1998 Rhode Island case it was noted that there are two ways to start a civil action. To paraphrase: The first is to follow the statutory procedure for starting a case and the second was “by opening a joint bank account with right of survivorship. “


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The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in Rhode Island who specialize in Wills and Trusts, Estate Planning, Guardianship, Probate, and Veterans Aid and Attendance Benefits.

They also are Newport Rhode Island Divorce Lawyers, Attorneys, Mediators, and Arbitrators providing services for Family Law issues such as Divorce, Child Custody and Visitation, Support, and Military Family Law. 

Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.

KLR Article: Seven Reasons to Review Your Will

Our office received this article from the montly e-newsletter supplied by Kahl, Litwin Renza & Co, Ltd. (KLR). Their office can be reached at 888-KLR-8557 or their webiste at www.KahnLitwin.com. We thought our clients would be interested in this "short list" of reasons to review your will.

Seven Reasons to Update Your Will

Wills Must Keep Up With Life Changes

A will is an essential part of planning for the future. But don't think creating a will is a one-time proposition. Even if you have a valid document, it may need to be updated for a variety of reasons. For example:

1. Deaths - If individuals named (as heirs or executors) have died or they become incapacitated, a will should be changed.

2. Assets - Revisions may be needed if the value of assets has increased or decreased significantly, or they are no longer owned. For example, if you specifically leave your home to one of your children, and later sell it, you may want to change the distribution of your other assets.

3. Marriage - Wedding bells usually signal the need to review a will. Which assets should pass to your spouse? Are step-children involved? If this is not spelled out in a will, the state will decide. In a community property state, a spouse automatically inherits half of all community property. In most other states, a spouse may receive one/third to one/half of the estate, absent any other directions.

Also, keep in mind that an unmarried couple living together may want to leave assets to each other but in order to make an inheritance happen, it must generally be spelled out in a will.

4. Divorce - In many states, a divorce automatically revokes a will or those provisions concerning an ex-spouse. As a result, if you get divorced, it's best to have a new will drafted. For instance, you might have your former spouse removed as a primary beneficiary. In addition, you may want to change the beneficiary of your life insurance, pension or any existing IRAs. Consider the use of a trust if children from a previous marriage are involved.

You may also want to change your will if one of your children gets divorced.

5. Births - Once parents have children, their wills should be amended immediately to include the names of guardians to care for the children in the event the parents die prematurely. Also, parents or grandparents might wish to restructure their wills concerning distribution of assets after children are born. Again, the use of a trust may be recommended.

6. Retirement - This event may also trigger the need to make changes to an existing will. For example, many retirees sell their homes and move to other states. But state laws can vary widely. Furthermore, individuals may consider a power of attorney that enables someone else to act on their behalf in the event of certain illnesses.

7. Tax law revisions - The Internal Revenue Code is regularly changed. In fact, many aspects of estate tax planning are in flux right now. A will should be designed to take advantage of maximum tax benefits that exist today so it may have to be updated as tax laws change.

Where is It?

Before it's too late, people should let someone know where their original will is stored. If one can't be found after a person dies, a court may decide it was destroyed. Have your attorney and/or your accountant retain the original will. Ask them what will happen to the document if they die, move, or quit practicing.

Store the will at home. Of course, it could be lost, inadvertently destroyed or discovered by an interested party who could deliberately destroy, conceal, or alter it.

You don't have to tackle this problem on your own. If you need to update a will, rely on your estate planning advisers to guide you.

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The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in Rhode Island who specialize in Wills and Trusts, Estate Planning, Guardianship, Probate, and Veterans Aid and Attendance Benefits.

They also are Newport Rhode Island Divorce Lawyers, Attorneys, Mediators, and Arbitrators providing services for Family Law issues such as Divorce, Child Custody and Visitation, Support, and Military Family Law. 

Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.