Full question:
MY brother is listed as the joint owner on checking, saving accounts and cds with my elderly widowed mother. Her will states that the money is to be divided equally amongst the 3 children. The banks states that they do not honor the will in case of my mother's death and that the money will become the property of the joint owner. My question is, what happens to the money should my brother die before he distributes the money. He has a spouse and I am concerned that the money would go to his estate or to her. He has also added his spouse as one of the beneficiaries on a large CD. How do I protect my interest in my portion of the estate?
- Category: Wills and Estates
- Subcategory: Probate
- Date:
- State: Texas
Answer:
If the account is a survivorship account or a transfer on death (TOD) account, the money passes directly to the joint owner upon your mother's death, bypassing probate. This means it won't be part of her estate or subject to her will. If the account is held as tenants in common, the deceased owner's share may go to their heirs.
In the event your brother dies before distributing the money, it will likely go to his estate, which could include his spouse as a beneficiary. Since he has named his spouse as a beneficiary on a large CD, that asset will also pass directly to her, not through his estate.
To protect your interest in your mother's estate, consider consulting with a legal professional about potential actions, such as a claim for breach of fiduciary duty if your brother acts outside his authority. The elements of such a claim include a trust relationship, breach of duty, and damages suffered. Be aware that defenses against this claim may include the statute of limitations, lack of a fiduciary relationship, or approval by the plaintiff.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.