[WSBAPT] jtwros account intended to go to multiple kids

[John Creahan]

I agree, and think that would be the better result. 
Still, the account distribution check will be issued in brother's name only if the bank refuses to recognize the TEDRA and divide the distribution between the siblings. The siblings could take the position that the brother's transfer to his sister was an account adjustment and not a gift, but I don’t think the IRS would be required to accept their position. 
And if I represented the brother, I would encourage him to start the statute of limitations by filing a 709 with a $0 gift.
Will the bank accept the TEDRA? I don’t know, but at the very least, discussions with bank counsel will almost certainly be more expensive than filing a disclaimer and initiating a probate.
On the other hand, a gift from brother to sister, while less accurate from a legal perspective, is faster and less expensive, with few downside risks.
My $.02.
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 Martin Silver
Sent: Tuesday, January 5, 2016 12:08 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] jtwros account intended to go to multiple kids

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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