Yonkers Estate Planning Lawyers Discuss Special Bank Accounts That Can Avoid Probate
Our Yonkers estate planning lawyer can explain that one of the significant drawbacks of the probate process is that it ties up a person’s funds for months or even years. Typically, loved ones cannot access the funds if they are part of the probate process. However, there are special bank accounts that allow the ownership of a bank account or other asset to pass outside the probate process.
Joint Tenants with Right of Survivorship
Our Yonkers estate planning lawyer can explain that an account held as joint tenants with right of survivorship is presumed to vest in the surviving joint tenant upon the other’s death. Additionally, a person’s creditors cannot reach this type of bank account to receive funds due to them because they automatically pass to the other joint tenant. The only exception to this rule is if either account owner owes money to the financial institution. The presumption does not hold true if there is a contract, agreement or signature card expressly declares otherwise. Another exception is if the joint tenant can show that the account was established by fraud or undue influence.
Tenants by the Entirety
A Yonkers estate planning lawyer can explain that accounts held as tenants by the entirety act in the same manner as joint tenants with right of survivorship. However, only spouses can hold accounts as tenants by the entirety. The presumption is that if spouses have an account together, it is presumed to be one of tenants by the entirety. However, additional requirements must be met for this to be true.
The last type of account that a Yonkers estate planning lawyer may describe is a tenants-in-common account.
Legal Assistance from Our Yonkers Estate Planning Lawyer
If you would like more information on these types of special accounts, contact a Yonkers estate planning lawyer from Rogers & Rogers, Esq. by contacting (718) 994-1640 or emailing evan(a)rogersandrogersesq.com.