QUESTION

Would it make any difference if there were a will instructing the assets of the estate be divided equally?

Asked on Feb 23rd, 2013 on Estate Planning - Michigan
More details to this question:
Suppose the last surviving parent of two brothers dies without a will, leaving a $100,000 estate. Assume that according to the intestate law, the estate should be divided equally between the two brothers. However, one brother was party to a jointly held bank account (could be joint tenants with rights of survivorship, payment on death, or transfer on death) with $50,000 of the total $100,000 in it. Should this brother receive the $50,000 from the bank account plus $25,000 of the remaining $50,000 for a total of $75,000, or should he receive only the $50,000 from the bank account so the other brother also receives $50,000 rather than only $25,000?
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4 ANSWERS

Business Planning Attorney serving Livonia, MI at Frederick & Frederick Attorneys at Law
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The answer to your question is that a Will ONLY controls probate assets. Probate assets are assets titled only in the decedent's name, with no date of death beneficiary on them. In your summary, there are $50k of probate assets. The remaining $50,000 passes outside of probate and outside of the control of the Will. The only time that is sometimes overlooked is when the Will clearly references the account(s) in question and states that the account was set up jointly for convenience purposes alone. This only works with joint accounts and not POD or TOD accounts.
Answered on Feb 26th, 2013 at 2:08 PM

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Estate Planning Attorney serving Marquette, MI at The Wideman Law Center, P.C.
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The assets that were jointly owned belong solely to the surviving owner. The probate estate only controls those assets which did not have a co-owner or beneficiary on them. So in answer to your question, the division will be unequal as a result of how these assets were titled, one will get $75,000 and the other will get $25.000, unless the brothers agree to divide the money equally.
Answered on Feb 26th, 2013 at 2:07 PM

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Litigation Attorney serving Birmingham, MI at Lippitt O'Keefe Gornbein, PLLC
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An account titled joint tenants with rights of survivorship would allow the first amount of $50,000.00 to go to brother one. Thus, this amount is probably outside of the estate. If the intestate laws provide that the assets of the estate go equally to the two brothers, then brother one and brother two split the remaining $50,000.00. Under these facts, it is likely that brother one would get $75,000.00 and brother two would get $25,000.00.
Answered on Feb 26th, 2013 at 2:07 PM

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Possibly, yes, it could go $75,000/$25,000 - joint accounts are not probate assets unless they are brought in - to be brought in requires a finding after allegations, that they were accounts of convenience and not intended as a gift at death - the burden is on the person asserting that the account(s) were for "convenience" of the person who died - you would need an experienced probate attorney to guide you through that maze - of course, if the brother who was on the account values familial relationships, chances are he would "share" that money with his brother - but you only get to choose friends, not family - and those kinds of fights are what probate is all about sometimes!
Answered on Feb 26th, 2013 at 2:07 PM

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