In re the Estate of Corcoran
877 N.Y.S.2d 522, 63 A.D.3d 93 (2009)
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Rule of Law:
The statutory presumption of a joint tenancy with right of survivorship under New York Banking Law § 675 applies to brokerage accounts but can be rebutted by circumstantial evidence suggesting the account was for convenience. The presumption does not apply to an account where the signature card lacks express survivorship language.
Facts:
- A decedent mother was survived by four children.
- In her will, the decedent appointed her daughter, respondent, as executor, bequeathed her house to respondent, disinherited two sons, and divided the remainder of her estate equally between respondent and her third son, petitioner.
- Before her death, the decedent opened several joint accounts with respondent, including a Charles Schwab brokerage account and a Trustco Bank account.
- The Charles Schwab account contained survivorship language, constituted more than half of the decedent's estate, and the decedent retained exclusive possession of the checks for it.
- Respondent never withdrew funds from the Schwab account for her own use and considered it to be her mother's money.
- The signature card for the Trustco Bank account did not contain any specific language of survivorship.
- The decedent died on December 9, 2005.
Procedural Posture:
- After the decedent's death, respondent filed an application to settle the estate.
- Petitioner commenced a proceeding in Surrogate’s Court seeking to challenge the will and the disposition of joint accounts.
- The Surrogate's Court granted petitioner's application for discovery, and a jury trial commenced on limited issues.
- At the close of petitioner's evidence, respondent moved for a directed verdict.
- The Surrogate’s Court (trial court) granted respondent's motion and dismissed the petition.
- Petitioner appealed the dismissal to the Appellate Division of the Supreme Court.
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Issue:
Under New York Banking Law § 675, can a challenger rebut the presumption of a joint tenancy with right of survivorship by presenting circumstantial evidence that the account was created for convenience, and does this statutory presumption apply to a joint account when the signature card lacks express survivorship language?
Opinions:
Majority - Peters, J.
Yes as to the first part, and No as to the second part. A challenger can rebut the presumption with sufficient circumstantial evidence, and the presumption does not apply without express survivorship language. The court found that for the Charles Schwab account, the presumption of a joint tenancy applied, but petitioner presented sufficient circumstantial evidence to create a question of fact for a jury as to whether the account was for convenience. This evidence included the decedent’s exclusive control of the account, respondent’s conduct, and the inconsistency between the survivorship interest and the decedent's testamentary plan. For the Trustco Bank account, the court held that the statutory presumption under Banking Law § 675 did not apply because the signature card lacked express survivorship language. Therefore, the burden remained on respondent to prove decedent’s intent to create a joint tenancy, which she failed to do.
Analysis:
This decision clarifies the application and limits of the Banking Law § 675 presumption in estate litigation. It affirms that the presumption applies broadly to various financial accounts, including brokerage accounts, as long as survivorship language is present. However, the ruling significantly reinforces that the presumption is rebuttable, lowering the evidentiary bar for challengers to survive a directed verdict by showing that circumstantial evidence of convenience can be sufficient to send the question of intent to a jury. This empowers will beneficiaries to contest the automatic transfer of joint accounts that may contradict the decedent's overall estate plan.
