Houston Estate Planning and Elder Law Attorney Blog
Adult children in Texas are often added to an aging parent’s checking account so one of them can pay the bills. After the parent dies, that same arrangement can split a family when the child on the account treats the balance as an inheritance while the will divides everything equally. Texas answers the ownership question by statute, and the answer turns on the paperwork the parent signed at the bank.
A joint bank account passes to the surviving account holder after death in Texas only if the parent signed a written agreement creating a right of survivorship. A child added only as a convenience signer has no right of survivorship at all, and the money in that account belongs to the parent’s estate. McCulloch & Miller, PLLC sorts out these account disputes for families in Dallas and across Texas as part of its probate practice.
Convenience Signer or Joint Owner Under Texas Law
Chapter 113 of the Texas Estates Code sorts bank accounts into types, and two of them cover most of these disputes. A convenience account is an account opened in the names of one or more owners and one or more convenience signers, under terms providing that the money may be paid to the signers “for the convenience” of the owners. A joint account is an account payable on request to any of two or more parties, with or without a right of survivorship.
The difference shows up at death. Under § 113.154, when the last surviving owner of a convenience account dies, the convenience signer has no right of survivorship and ownership remains in the owner’s estate. Section 113.1541 applies the same rule when a convenience signer was added to some other kind of account, unless the signer was also named as a payable-on-death payee or beneficiary. Texas also says a parent who adds a convenience signer has not made that person a gift of the deposits.
Even a true joint account does not shift ownership while the parent is alive. Under § 113.102, a joint account belongs to the parties during their lifetimes in proportion to each one’s net contributions, unless there is clear and convincing evidence of a different intent. A child who deposited nothing has no ownership share while the parent is alive.
What Creates a Right of Survivorship
For a true joint account, § 113.151(a) gives the balance to the surviving party only if the deceased party’s interest was made to survive by a written agreement signed by the party who died. The statute is specific about what does not count. Under § 113.151(c), a survivorship agreement may not be inferred from the fact that an account is joint, or from a designation such as “JT TEN,” “Joint Tenancy,” or “joint.”
Section 113.052 supplies a uniform account selection form that a bank may use, on which the customer initials one account type. The form’s own notice states that a convenience signer owns the account at death only if also named as a payable-on-death payee or trust account beneficiary. The initialed form, or the bank’s equivalent, is usually the single most useful document in the dispute.
Much of the answer in these cases sits in the bank’s file. Call (713) 333-8900 to schedule a consultation at the firm’s Houston office.
Why the Bank’s Payment Does Not Settle Ownership
A bank that lets the sibling withdraw the balance has not decided who owns it. Texas protects financial institutions that pay according to the account terms, and a bank that pays a convenience signer before it receives written notice of the owner’s death is released from liability for that payment. For joint accounts, § 113.209(d) states that the bank’s protection does not affect the rights of the parties in disputes over who beneficially owns the money, and for convenience accounts § 113.154 has already placed ownership in the estate.
So a withdrawal does not end the question. An executor or administrator who finds that the account was a convenience account can treat the money as an estate asset and ask the sibling to return it. If the sibling refuses, the estate may need to pursue it in the probate court handling the estate. In Dallas County, that is one of the county’s three statutory probate courts. Recovery is never certain, and much depends on what the account records show and what happened to the money afterward.
Questions Heirs Ask About a Parent’s Joint Account
Does “JT TEN” on a Bank Statement Mean the Sibling Inherits the Account?
No. Texas law says a right of survivorship may not be inferred from a joint designation such as “JT TEN.” It requires a written agreement signed by the parent who died.
Can a Parent’s Will Override a Survivorship Account?
Generally not. Texas treats a valid survivorship transfer as effective under the account contract rather than as a gift by will, so the account passes outside the will. A convenience account is different, since its balance stays in the estate and passes under the will.
What Should an Heir Ask the Bank For?
The account agreement or signature card in effect when the parent died, including any account selection form the parent initialed. Texas determines survivorship by the form of the account at the time of death.
Getting the Account Records Before Anything Else
These disputes often start as a family argument and end as a question about one signed page at the bank. David W. Miller brings a finance background to estate administration at McCulloch & Miller, and the firm’s Texas probate process work regularly includes tracing accounts like these. Call (713) 333-8900 or contact McCulloch & Miller online and the firm will schedule a time to talk.