[WSBAPT] Great Banks in Tacoma

[Eric Nelsen]

Any bank should allow it--perhaps the terminology "community property account" is throwing them off. Just ask for a joint account without right of survivorship. See RCW 30A.22.050(2)<http://app.leg.wa.gov/RCW/default.aspx?cite=30A.22&full=true#30A.22.050>. On most account applications or records I've seen, there's typically a box to be checked to confirm that the account is NOT with right of survivorship. The default for most banks appears to be with ROS.

Strictly speaking, the names on the account have no bearing on whether or not the funds in the account are or are not community property. RCW 30A.22.030(5)<http://app.leg.wa.gov/RCW/default.aspx?cite=30A.22&full=true#30A.22.030>. The issue is traceability--if the funds deposited are traceable to a community source (wages or whatever), they're community funds. If they're not really traceable, or the community and separate deposits and various withdrawals are so muddled that it can't be sorted out, a court would generally hold that all funds are hopelessly commingled and therefore deem them all community property.

I know you didn't ask and I'm not sure if this is relevant to your clients, but note that even if an account is JTWROS, the survivorship rights on the account is subordinate to community property rights. RCW 30A.22.100<http://app.leg.wa.gov/RCW/default.aspx?cite=30A.22&full=true#30A.22.100>, first line.

So if the account is in name of one spouse plus a third party and that spouse dies, the surviving spouse retains her/his right to at least half the deposited community property funds, because no spouse can devise/bequeath/transfer at death more than half of a community property asset. RCW 26.16.030(1)<http://app.leg.wa.gov/RCW/default.aspx?cite=26.16&full=true#26.16.030>. Arguably, under some case law, the surviving spouse could argue that the ROS was wholly ineffective because the surviving spouse did not agree to the disposition.

If the account is in name of both spouses plus a third party and one spouse dies, the likely outcome is that 3/4 of the funds belong to the surviving spouse and 1/4 to the third party. Because the statute says that survivorship is subordinate to community property rights, the ROS on the bank account should only apply to half the community funds in the account. So, if the account is all community property, at death of the first spouse, in theory half the balance is retained by the surviving spouse and the other half is divided equally between surviving spouse and third party as the surviving account holders...meaning surviving spouse retains 3/4 of the account and third party gets 1/4. As a practical matter that might not mean much because the two survivors likely will just continue as they have, and once another one of them passes the survivor inherits the whole account.

Sincerely,

Eric

Eric C. Nelsen
SAYRE LAW OFFICES, PLLC
1417 31st Ave South
Seattle WA  98144-3909
phone 206-625-0092
fax 206-625-9040

From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Julius, Daelyn
Sent: Thursday, January 25, 2018 9:05 AM
To: wsbapt at lists.wsbarppt.com
Subject: [WSBAPT] Great Banks in Tacoma

My married couple clients are having difficulty finding banks in Tacoma that will let them transfer their assets out of Joint Tenants With Right of Survivorship to a Community Property Account.  Does anyone know of any Tacoma banks that will let you have a Community Property Account and if not a Joint Tenants Without Right of Survivorship Account?  Thanks in advance for your responses.  Have a great day.

Daelyn Julius
Attorney at Law

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