Probate

Probate attorneys, both those involved in probate litigation as well as estate planning, should consider the ramifications of the following decision:

Rosemary Dean v. William T. Pelham, Pers. Rep. of the Estate of William McNatt, Case No. 73A01-0806-CV-306

In this case, the Indiana Court of Appeals held that a person designated as a “signer” or “signator” on a bank account was entitled to the sum remaining on deposit in the account upon the death of the owners even though the signator herself had not been designated as an owner of the account. The Court reasoned that since the signator had the ability to withdraw funds from the account she therefore qualified as a “party” to the account pursuant to Indiana Code § 32-17-11-18.  Being a party to the account then entitled her to the statutory presumption of survivorship rights.  The Court did note, however, that the signator’s survivorship rights to the account could be defeated by evidence that she was merely an agent for the account’s owners. In this case, however, no such evidence was presented. Instead, the evidence established that the signator never made any deposits into or withdrawals from the account or that signator was even aware of her status on the account.  According to the Court, this evidence cut against a finding that an agency relationship existed.  The Court also addressed additional arguments as to why the proceeds of the account should pass into the estate rather than to the signator, but none of the arguments were persuasive and the case was remanded with instructions for the trial court to grant summary judgment in favor of signator.

The opinion was originally handed down as not for publication but was reclassified for publication on January 12, 2009.  A full text copy of the opinion can be found here for those that may be interested in reading this decision.