You be the Judge: Joint Account

Many people have a joint bank account, since it offers obvious conveniences.  Many joint depositors give little thought to how ownership of the joint account might be resolved at the death of one of the joint owners.

But in a recent case the Appellate Division of the Superior Court examined the issue.

Decedent's joint account contained more than $300,000 at his death.  The surviving joint tenant liquidated the account.  The Estate sued, claiming the funds should be distributed in accordance with the Last Will and Testament.

At the trial, decedent's attorney appeared as the only witness for the Estate.  He recalled the joint tenant once told him the account was only for the convenience of paying decedent's living expenses.  But there was also evidence that decedent intended any balance at his death would belong to the joint tenant. 

YOU BE THE JUDGE: To whom does the balance in a decedent's joint bank account belong--the joint tenant on the account or the Estate?

The trial judge reviewed a statutory test enacted by the Legislature in 2001; such a balance belongs to the joint tenant unless there is clear and convincing evidence that the decedent had a different intention at the time the account was created.

The trial judge concluded the Estate had failed to present "clear and convincing" evidence that decedent intended the balance be distributed to anyone than the joint tenant.

The Appellate Division affirmed.  It also noted that the Estate did not demonstrate that the joint tenant abused any confidential relationship with decedent or that he exerted undue influence over decedent's decisions.