Joint Account
After my husband’s death 15 years ago, I opened a joint bank account with my daughter so she would have access to funds in case I became incapacitated.
Five years ago, my daughter deposited her inheritance from her sister (also my daughter) into this account.
I also have a CD at this bank and I am sole owner with my daughter as beneficiary.
Finally, Terry, I get to our question! In the event of a divorce would my son-in-law be entitled to half of the proceeds in the joint account whether they were my money or her inheritance?
Thank You
Terry Says
That’s a tough one to answer. She did not blend her inheritance with her marital assets, so that would exclude them. And her divorce attorney would easily be able to clarify that the funds in the original account belong to you.
And it also depends on state law, and how state law defines marital property. Does she live in a community property state? An attorney could tell her if her funds (and yours) would be at risk in this situation. And you could create a Revocable Living Trust and rename both accounts, with yourself as Trustee and her as successor trustee, in case you are incapacitated. That would go a long way toward removing them from her name.
I guess it just depends on how much of a jerk her husband and his attorney want to be in a divorce proceeding!
