[WSBAPT] jtwros account intended to go to multiple kids

[Martin Silver]

I don’t know if he has to file a 709 if the settlement is written so that he 
was only intended to be, or is by law, a 50% devisee of M's estate, since 
she did not intend to make a gift to client of 100% of account.

-----Original Message----- 
From: John Creahan
Sent: Tuesday, January 05, 2016 11:46 AM
To: WSBA Probate & Trust Listserv
Subject: Re: [WSBAPT] jtwros account intended to go to multiple kids

I generally agree with the other answers, particularly the reminder about 
potential creditor issues (for both brother and sister).
It appears that a disclaimer most closely matches the parties' intent, from 
a legal perspective, but as someone said, disclaimers often get messy. At 
the very least, I would review mom's account agreement to determine what 
happens to the account funds if both joint tenants have passed away. If, as 
expected, the funds would pass to mom's estate, a probate would be required. 
I don’t have any problem recommending probates to my clients, and in this 
case a probate would be relatively inexpensive.
On the other hand, assuming the brother is amenable, it would be relatively 
simple for him to accept the account assets and give half to his sister. He 
will need to file an IRS Form 709, but, unless he is unusually wealthy, this 
gift is unlikely to increase his lifetime estate or gift taxes paid.
Hope this helps,
John

John Creahan
206-621-5848
www.cairn-law.com



-----Original Message-----
From: wsbapt-bounces at lists.wsbarppt.com 
[mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Krista MacLaren
Sent: Tuesday, January 5, 2016 9:20 AM
To: wsba probate & trust <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] jtwros account intended to go to multiple kids

Hi Listmates,

I have a potential client whose mother died.  No Will, no real estate, only 
non-probate accounts.  There are two children of decedent - client and 
sibling.  For convenience, Mom made client a joint owner on her investment 
accounts, held JTWROS.  This is the bulk of the estate, nearly $500,000. 
Client ntends to pay his sister her half, but i am wondering how he should 
do that.  We don’t want him to have to gift the money to sister.  If he 
disclaims half, then would a probate be required because it would then be in 
the estate?  What is the best way to handle this situation?  I have never 
handled this for such a large account.

Thank you!

Krista J. MacLaren
Attorney at Law
9725 3rd Ave NE, Suite 600
Seattle, WA 98115
(206) 523-6116

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