What happens if we share a title to certificate of deposit and one of the people dies? 3 Answers as of June 16, 2011

Two brothers share the title to certificate of deposit. If one brother dies does the title to the CD pass to the surviving brother?

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Asset Protection and Elder Law Center
Asset Protection and Elder Law Center | Shadi Alai-Shaffer
Yes, if it is a jointly held account the title to the CD should pass to the surviving brother unless the financial documents state otherwise. Standard would be for it to pass to other person on the jointly held account.
Answer Applies to: California
Replied: 6/16/2011
Komanapalli Massey LLP
Komanapalli Massey LLP | Mark A. Massey, Esq.
If the brothers specifically had a written agreement between them by which they indicated that they intended there to be a "right of survivorship" with respect to one another's respective shares, then title would pass instantly to the surviving brother at the deceased's death and there would be zero tax consequences to the survivor. Or, if the bank's or other certificate holder's terms of purchase included a "right of survivorship" between the co-holders, that would cause the same passage of title. Or, if the deceased had a will indicating that he wished for his share to pass to his brother upon his death, that would give the survivor the right to title, But, without those magic words, "right of survivorship," being in the will, which cause title to pass instantaneously to the survivor when the deceased passes, there would likely be gift or estate tax consequences.If none of these possibilities are at play, then the deceased's share will become part of his estate. If he died intestate (without a will), then the deceased's share will pass in accordance with the laws of intestacy to his wife, then to his children if wife predeceased him but they had kids, if no wife and no kids, then to his parents. If no parents survive, then the brother will share it equally with his siblings, or it will be all his if no sibs.
Answer Applies to: California
Replied: 6/16/2011
The Schreiber Law Firm
The Schreiber Law Firm | Jeffrey D. Schreiber
Depends on how the title was held. If it is joint tenants with right of survivorship, yes. Otherwise, no. Sent from my Verizon Wireless BlackBerry
Answer Applies to: California
Replied: 6/15/2011
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