When you open a joint bank account with a right of survivorship, the intention is often straightforward: when one account holder passes away, the remaining funds automatically belong to the surviving owner. It’s a common tool used to bypass the probate process and ensure a smooth transition of assets. But what happens when this seemingly simple arrangement is called into question? The reality is that these accounts are not always immune to disputes.
Many people are surprised to learn that the question of can a right of survivorship bank account be challenged has a definitive answer: yes, it can. While these accounts are designed for simplicity, they can become a focal point for legal challenges from family members or other beneficiaries who feel the final outcome does not reflect the deceased’s true intentions or is otherwise unjust.
Grounds for Challenging a Survivorship Account
So, on what basis can such a challenge be made? There are several common legal arguments. A challenge might claim that the surviving owner unduly influenced the deceased, perhaps during a time of vulnerability, to add them to the account. Another ground is a lack of mental capacity, arguing that the deceased did not fully understand the consequences of creating the account. Fraud or forgery in the setup of the account can also be a basis. Finally, if there is clear evidence that the account was only meant for convenience—like helping to pay bills—and not as a true gift, a court may rule that the funds should be part of the general estate.
Who Typically Brings a Challenge Forward?
You might be wondering who would step forward to dispute the account. The individuals most likely to file a challenge are those who stand to inherit from the deceased’s will or trust but see those assets diminished by the survivorship account. This often includes children from a previous marriage, other heirs named in the will, or creditors of the estate who are concerned about available assets to settle debts.
Protecting Your Intentions for the Future
If your goal is to use a right of survivorship account and ensure it withstands any potential challenges, clarity is your greatest ally. It is crucial to document your intentions clearly. This can be done within the bank’s own account agreement forms and, ideally, reinforced in your will or a separate letter of instruction. Explaining why you are creating the account and who you intend to benefit can provide powerful evidence of your wishes if they are ever questioned.
While a right of survivorship account is a powerful and useful financial tool, it is not an impenetrable fortress. Understanding that these accounts can be contested is the first step in creating an estate plan that truly holds up, ensuring your assets are distributed exactly as you intended.
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