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Avoid Family Disputes: How One $80,000 Bank Account Sparked a Court Battle
In the case of Cooke v. Miller (Estate), 2005 BCCA 263, a seemingly simple act of estate planning led to a family conflict and costly litigation.
Before his death, the deceased transferred two bank accounts worth approximately $80,000 into joint tenancy with one of his six children. In his will, he stated that his estate should be divided equally among all six. However, because the bank accounts passed outside the estate by right of survivorship to the one child as joint tenant, the estate’s remaining value was less than $6,000.
Unsurprisingly, the five other children challenged the outcome. They argued that the funds in the joint accounts should be held in trust for the estate, and thus shared equally under the will. The court disagreed. It held that the joint account funds were a valid gift to the one child. What made the difference? The deceased’s estate planning lawyer provided compelling evidence that the deceased intended to gift those funds to the child.
This case highlights a common source of estate disputes: unclear intentions around joint bank accounts. Even when well-meaning, poor documentation or vague planning can unintentionally disinherit other family members and lead to stressful and expensive litigation.
The Lesson: Document Your Intentions Clearly
Joint accounts can sometimes be a useful estate planning tool, but only if used thoughtfully and with legal guidance. If you're thinking of using joint ownership to simplify your estate or avoid probate, make sure your intentions are clearly documented, ideally with help from an experienced estate-planning lawyer.
Take Action
If you want to ensure your estate plan reflects your wishes and helps protect your family from future conflict, reach out to our estate planning team at Johnston Franklin Bishop Lawyers at 250-756-3823 or ar@jfblaw.ca. We would be happy to help you create or update a plan that’s clear, legally sound, and tailored to your goals.
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