Conservator curious about what happens to bank accounts when ward passes

[blbr]

Jurisdiction

Tennessee

A little background:
15 years ago my aunt and uncle made me their Executor of Estate, added me as an authorized signatory on all of their accounts, made me the POD on the accounts, and added my name as someone who could access their safe deposit box.
My aunt is in the nursing home with end stage Alzheimer's, and my uncle has been handling their affairs. My uncle passed away in March, and I have petitioned the court for, and been granted, a conservatorship over my aunt with full authority to manage her affairs up to and including disposing of property. My plan is to sell the real estate and personal property, including vehicles, as it will only depreciate. An account will be opened, and all proceeds from these sales will be deposited into this account to pay for her care. My question is this; what happens to the other bank accounts when she passes? I do not foresee her outliving her funds, and I am curious if the POD will remain in effect when she passes, or if this will change since I have been granted the conservatorship.
Thank you for considering my question.

 

[army judge]

My question is this; what happens to the other bank accounts when she passes? I do not foresee her outliving her funds, and I am curious if the POD will remain in effect when she passes, or if this will change since I have been granted the conservatorship.

When your relative dies, her bank account proceeds should pass to you, as long as you are POD.

You might wish to consult an attorney now.

What is Probate?
Probate is a court-supervised process for identifying and gathering the assets of a deceased person (decedent), paying the decedent's debts, and distributing the decedent's assets to his or her beneficiaries. In general, the decedent's assets pay the probate proceeding's cost, the decedent's funeral expenses, then the decedent's outstanding debts. The remainder of the assets is distributed to the decedent's beneficiaries. You can find the Florida Probate Code in Chapters 731 through 735 of the Florida Statutes. You can find the rules governing Florida probate proceedings in the Florida Probate Rules, Part I and Part II (Rules 5.010-5.530).

There are two types of probate administration under Florida law: formal administration and summary administration. This pamphlet will primarily discuss formal administration.

There is also a non-court-supervised administration proceeding called "Disposition of Personal Property Without Administration." This type of administration applies only in limited circumstances.

Consumer Pamphlet: Probate in Florida – The Florida Bar
...

A guardian is a surrogate decision-maker appointed by the court to make either personal and/or financial decisions for a minor or for an adult with mental or physical disabilities. After adjudication, the subject of the guardianship is termed a "ward."

Florida law requires the court to appoint a guardian for minors in circumstances where the parents die or become incapacitated, or if a child receives an inheritance or proceeds of a lawsuit or insurance policy exceeding the amount allowed by statute.

Adult guardianship is the process by which the court finds an individual's ability to make decisions so impaired that the court gives the right to make decisions to another person. Guardianship is only warranted when no less restrictive alternative—such as durable power of attorney, trust, health care surrogate or proxy, or other form of pre-need directive—is found by the court to be appropriate and available.

Guardianship - Florida Courts
...

 

[adjusterjack]

I am curious if the POD will remain in effect when she passes

The POD won't change. The money is yours at the moment of her death.

I suggest you be more concerned about any accounts you open (or have opened) as conservator. That money and any of her non-monetary assets are part of her estate and will have to be probated.

Are you named in her will as sole heir? Read it. Don't rely on memory.

 

[zddoodah]

My question is this; what happens to the other bank accounts when she passes?

You told us earlier in the post, that you're designated as the pay-on-death beneficiary. If that's still the case, then the money will be yours. That doesn't change just because you were subsequently named conservator.

 

[blbr]

The POD won't change. The money is yours at the moment of her death.

I suggest you be more concerned about any accounts you open (or have opened) as conservator. That money and any of her non-monetary assets are part of her estate and will have to be probated.

Are you named in her will as sole heir? Read it. Don't rely on memory.

There is no will. They "wrote" instructions for me and left them in the bank vault thinking that I would have the authority to carry out those wishes. I told them on several occasions that they needed to have their will signed, witnessed, and notarized, but they thought it was taken care of. I am concerned about the new accounts, but I was also thinking it might look strange if I placed all of the money from the estate into an account that I know is POD to me.

 

[zddoodah]

They "wrote" instructions for me and left them in the bank vault thinking that I would have the authority to carry out those wishes.

Why is the word "wrote" in quotation marks? By any chance were these written instructions signed? If so, it's possible that the written instructions will constitute a holographic will.

I strongly suggest you retain the services of an attorney to review the situation and advise you.

 

[adjusterjack]

I am concerned about the new accounts, but I was also thinking it might look strange if I placed all of the money from the estate into an account that I know is POD to me.

As conservator you have a statutory duty to safeguard her assest and not convert them to your own use.

Best way to do that is to open separate accounts for her money.

As long as she is alive, following the handwritten instructions should be fine.

Upon her passing, your conservatorship likely ends and you will have to open probate under intestacy and be appointed representative of the estate.

 

[blbr]

Why is the word "wrote" in quotation marks? By any chance were these written instructions signed? If so, it's possible that the written instructions will constitute a holographic will.

I strongly suggest you retain the services of an attorney to review the situation and advise you.

I put wrote in quotes because we have no way of knowing who wrote the instructions. They did sign the instructions, but I don't have any way of of proving which one of them, if either, wrote them out.

 

[Zigner]

... I don't have any way of of proving which one of them, if either, wrote them out.

THAT is a problem. You will need to have two witnesses who can attest that the handwriting is that of the testator.

 

[adjusterjack]

I put wrote in quotes because we have no way of knowing who wrote the instructions. They did sign the instructions, but I don't have any way of of proving which one of them, if either, wrote them out.

Then when she passes the assets that you administer as conservator are part of the estate and you no longer have anything to administer as conservator.

I think I said earlier that you will have to be appointed representative of the estate to administer the probate of the estate.

After debts and expenses are paid, the rest are distributed under the TN intestacy (no will) law:

Tennessee Code § 31-2-104 (2021) - Share of Surviving Spouse and Heirs :: 2021 Tennessee Code :: US Codes and Statutes :: US Law :: Justia

Read it carefully.