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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link=blue vlink=purple><div class=WordSection1><p class=MsoNormal>Dear listmates,<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>I would appreciate feedback on my analysis of where the funds in two JTWROS accounts of the decedent should go, to the surviving spouse outright, or into the estate account for eventual distribution to a testamentary trust for the benefit of the surviving spouse. Please forgive the length.<o:p></o:p></p><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Verdana","sans-serif";color:#373739;background:white'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Verdana","sans-serif";color:#373739;background:white'>In the probate in question, there are two JTWROS accounts. One was set up by decedent shortly after her marriage to surviving spouse. We believe the funds used to open the account were her separate property. We assume that when the account was set up, she intended it to be a JTWROS with the surviving spouse. Later, as her ability to manage her affairs diminished, her daughter from a prior marriage (named PR in the will) was added as a joint tenant. Daughter agrees this was for convenience, and there was no intention for her to have the right of survivorship. At the same time, daughter was also made attorney-in-fact for her mother, effective immediately. Acting in that capacity, the daughter transferred money from her mother’s separate property checking account to the JTWROS account. The amount that was transferred exceeds the date of death balance of the credit union account. She also opened a JTWROS brokerage account with the mother, using some credit union funds, but mostly funds from the separate checking account. Daughter agrees that her name was on the account for convenience and that she should not receive them as a survivor.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Verdana","sans-serif";color:#373739;background:white'><o:p> </o:p></span></p><p class=MsoNormal>Relevant statutes: RCW 30A.22.100 (formerly RCW 30.22.100) provides that subject to community property rights, “<span style='font-size:9.0pt;font-family:"Verdana","sans-serif";color:#373739;background:white'>Funds belonging to a deceased depositor which remain on deposit in a joint account with right of survivorship belong to the surviving depositors unless there is clear and convincing evidence of a contrary intent at the time the account was created. If there is more than one individual having right of survivorship, the funds belong equally to the surviving depositors unless the contract of deposit otherwise provides. If there is more than one surviving depositor, the rights of survivorship shall continue between the surviving depositors.” <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Verdana","sans-serif";color:#373739;background:white'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Verdana","sans-serif";color:#373739;background:white'>Unless provided in the durable power of attorney specifically, RCW 11.94.050 provides an attorney in fact does not have the power “to make, amend, alter, or revoke … designation of persons as joint tenants with right of survivorship with the principal with respect to any of the principal’s property … [or] to make any gifts of property owned by the principal.”<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Verdana","sans-serif";color:#373739;background:white'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Verdana","sans-serif";color:#373739;background:white'>My analysis: The daughter had no power to gift the separate property in the mother’s separate property checking account to the JTWROS credit union account. Since the funds remaining in the account are less than the separate funds placed there, those funds should go to the estate. The funds in the brokerage account that came from the separate checking account should go into the estate account as well. The daughter did not have the power to gift them, nor did she have the power to create a joint tenancy account. The funds in the brokerage that came from the credit union account should go to the estate, as long as we confirm all the funds in that account at the time of the transfer were the mother’s separate funds.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Verdana","sans-serif";color:#373739;background:white'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Verdana","sans-serif";color:#373739;background:white'>If my analysis is correct, how should I proceed? The daughter will voluntarily place the funds from the brokerage account in the estate account. How about the credit union account? Do we ask the surviving spouse to disclaim? If he will not, do we petition the court for a ruling on the nature of the funds?<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Verdana","sans-serif";color:#373739;background:white'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Verdana","sans-serif";color:#373739;background:white'>Thank you in advance to everyone who wades through this email and responds.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Verdana","sans-serif";color:#373739;background:white'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>Lovie Bernardi</span><span style='font-family:"Arial","sans-serif"'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>Attorney at Law</span><span style='font-family:"Arial","sans-serif"'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>Seligmann & Flaherty, PLLC</span><span style='font-family:"Arial","sans-serif"'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>216 First AVE S, #450</span><span style='font-family:"Arial","sans-serif"'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>Seattle, WA 98104</span><span style='font-family:"Arial","sans-serif"'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>(206) 682-2616<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Arial","sans-serif"'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'><a href="mailto:joni@sbfirm.com"><span style='color:blue'>lovie@sbfirm.com</span></a></span><span style='font-family:"Arial","sans-serif"'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'><a href="http://sbfirm.com/"><span style='color:blue'>http://sbfirm.com</span></a></span><span style='font-family:"Arial","sans-serif"'><o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif"'> <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>**********<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>This e-mail may contain information that is privileged, confidential or otherwise protected from disclosure. If you are not the intended recipient or otherwise have received this message in error, you are not authorized to read, print, retain, copy or disseminate this message or any part of it. If you are not the intended recipient or otherwise have received this message in error, please notify us immediately by e-mail, discard any paper copies and delete all electronic files of the message. <i>Circular 230 Notice: This communication may not be used by you or any other person or entity for the purpose of avoiding any federal tax penalties.</i></span><span style='font-size:12.0pt'><o:p></o:p></span></p><p class=MsoNormal><o:p> </o:p></p></div></body></html>