Are there special bank accounts that can be passed from a deceased account holder to another person without going through the probate process? A North Palm Beach estate planning attorney knows that there are several different types, including the following:
- Joint tenants with right of survivorship;
- Tenants by the entirety; and
- Tenants in common.
Joint Tenants With Right of Survivorship
If two or more people are listed on an account, it is understood that all rights vest in the surviving people. This is void if it is expressly written otherwise in a contract, agreement or signature card. Otherwise, the only way a Right of Survivorship can be void is if there is proof of fraud or contrary intent. Creditors of a deceased person’s estate are unable to reach these accounts because the surviving tenant retains control, unless that person owes money to that financial institution.
Tenants by the Entirety
Tenants by the entirety are accounts held by both a husband and wife as tenants. This means that the account is held by the entirety, as long as the account was created following the guidelines of right of survivorship, interest, possession, time and title.
Tenants in Common
With a joint bank account, there is something known as presumption of survivorship. To create a tenant in common bank account, there needs to be evidence that it was intended all along to be a tenant in common account. The account agreement or signature card should specify this, in order that it is clearly spelled out.
For more information on these types of accounts, contact North Palm Beach estate planning attorney Al Morici Attorney at Law at 561-471-2551.