[WSBAPT] Qualified Disclaimer

[Heather de Vrieze]

I agree with Phil's analysis, if son can simply close the joint account and deposit to the estate account, that should be sufficient. If that is not possible, or son has already retitled in his own name, that is complicated, but he could easily disclaim $X of the probate assets to equalize.

Also, if you do a disclaimer, it shouldn't be a disclaimer of 50% of the account, but 100% of the survivorship element of the account, such that the full proceeds will be distributed according to the Will.

Heather

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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Philip N. Jones
Sent: Friday, March 26, 2021 12:12 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Qualified Disclaimer

I don't think that a disclaimer is necessary.  Nor is a gift necessary.  There is case law indicating that the IRS and/or the courts are willing to recognize convenience accounts (or nominee accounts), in which Mom put Son on the account merely to let him pay her bills with her money, with any balance at death to be divided by Son among all of his siblings. Chrysler, 361 F.2d 508 (2d Cir. 1966).  The regs also support this concept.  Reg. 25.2511-1(g)(1) and 25.2511-2.  As a result, Son does not make a gift when he follows Mom's intent.  I would treat the account as a probate asset, or have Son close the account and deposit the funds to an estate account.
Phil Jones
Portland OR


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From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>> On Behalf Of JOYCE SCHWENSEN
Sent: Friday, March 26, 2021 11:47 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: [WSBAPT] Qualified Disclaimer

Dear colleagues,

Can anyone offer me some guidance on preparation of a qualified disclaimer? Parent made one adult child a joint owner of parent's bank account as a convenience. Parent has died and the  Will leaves everything to all children. The child on the joint account understands they own those funds now, but wants to share the funds with their siblings. There are tax reasons for disclaiming rather than gifting the account. But is the inheritance to be disclaimed only a 50% interest in the account? Or can the disclaimer cover 100% of the funds in the formerly joint account? Any help would be appreciated.

Thank you, Joyce

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