Co-Executor/Joint Account Issue

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betsysmith

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My jurisdiction is: Ohio

My husband (Tom) and his brother (Dick) are co-executors of their mother's (Lucille) estate. In 2005, Lucille moved into a nursing facility, but still owned her house. Dick was taking care of her finances; making sure bills were paid both at the house and the nursing home, out of her account. Dick purchased land from Lucille in 2006 and paid for it in cash. Lucille had a checking and savings account which were both joint accounts with her and Dick on them. Her intention was for him to be able to write checks for her.
She passed away in 2007. Her house was in a family trust, of which Tom and Dick were co-trustees. According to Lucille's will, the house and all money was to be split equally among her five children.
The house was sold and an esate account was set up with that money. When the five siblings gathered to settle the accounts, Dick wanted to be reimbursed for expenses he had paid out of the joint account -- funeral expeneses, attorney fees, etc. The estate account had already been probated, with no outstanding bills. Dick wanted these expenses taken out of the estate account. The siblings questioned this, knowing the expenses were paid out of their mother's account. Dick has mentioned the fact that the joint accounts became "his" upon her death. It was decided to not disburse any funds at that time, as the siblings were not in agreement. Dick would not discuss his intentions for the joint account; only that he wanted to disburse funds from the estate account AFTER taking out the expenses paid from the joint account.
The siblings understand that "legally" the joint accounts are now his and it is up to him whether or not he abides by their mother's wishes.
Since Tom has access to the estate account, he had 5 equal cashier's checks cut to the siblings. Dick's check was mailed registered, return receipt requested; however, the signature card was signed by an "agent" and is not legible. The bank can stop payment on the check after 10 days and re-issue it. That is Tom's intention -- and then to mail it "restricted" delivery.
Is there any way to prove that Lucille agreed to joint accounts only for the purpose of paying her bills? And is Tom within his legal rights as co-executor to disburse the estate account 5 equal ways?
 
You have several issues. One is whether Dick paid FMV for the land and if that money was properly placed in the account.

If the time period to file a claim against the estate has passed, he cannot now come back and file a claim. He is legally barred just like he is legally entitled to the money in the joint account. Therefore, the payments were gratuitous and the estate is not liable.

I don't see a need to stop payment on the check. However, normally both executors are required to sign any disbursements.

There is also the issue of whether the joint account is actually his or should be included in the estate. Even though it was a joint account, if the intent was simply for him to be able to pay her expenses, then the estate may have a claim. But, unless there is a substantial sum, probably not worth the fight.
 
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