Peacock Tales

Volume 19, Number 2 · April 2009

Did you mean to write Johnny out of your will?

. . . . The Superior Court doesn't think so.

In Pennsylvania it used to be that a joint account created by an individual belonged to the survivor upon the creator's death and was not part of the creator's estate, unless there was "clear and convincing evidence" that such was not the creator's intent. For instance, if the account was merely a convenience to allow the co-tenant to pay the creator's bills it was included in the creator's estate.

A recent Pennsylvania Superior Court decision has put a wrinkle in the old rule. If the joint account was setup before a will is signed the old rule still applies. However, if the joint account is created after a will has been signed there seems to be a new rule that the earlier will trumps or overrides the later joint account. That is, unless the surviving tenant can prove that the creator had capacity, full knowledge and intended that the joint account override the preexisting will.

So what is a person to do? Make your intent perfectly clear. Under the present state of Pennsylvania law, the only guaranteed way of doing so may be to make a new will after you setup a joint account. Before you create a joint account, or after, you may want to discuss the account with your Peacock Keller attorney to insure your intent is perfectly clear.