Decedent's intent in naming account beneficiaries important even if bank protocol not followed

In an unpublished opinion dated October 2, 2012 in In re Estate of James D. Goodin, the Michigan Court of Appeals affirmed the probate court order equally dividing the proceeds of a bank account between the personal representative and the decedent’s sister.

Lori Bialkowski met the decedent in 1997 and began a more personal relationship with him in 2003. She moved into his home when his health began to deteriorate in 2007 and lived with him until his death in October 2010. She was the primary beneficiary under his will and personal representative of his estate.

Decedent opened a checking account in 1996. In 2008, he gave his sister rights to the account as a power of attorney and soon after added her as a joint owner of the account. Two months before his death, decedent gave Lori power of attorney over his accounts and signed a signature card for the checking account listing Lori’s name and a handwritten notation of “adding beneficiary.” Testimony suggested that the decedent intended to add Lori as a joint owner, but did not follow bank protocol to add a joint owner to the account. The probate court decided that the bank employee’s failure to follow bank protocol was not fatal to Decedent’s intent.

The trial court found that Lori was a joint owner, and split the checking account between Lori and Decedent’s sister. The sister appealed, but the Michigan Court of Appeals did not find clear error in the probate court’s finding that Decedent intended to make Lori a beneficiary of the account.

This case stresses the importance of reviewing the beneficiaries on each asset as part of a complete estate plan. Without Lori’s name as a beneficiary on the account, the entire account would have gone to the sister, which was not Decedent’s intent. If you need help drafting or reviewing your estate plan, please contact Gallagher Law Firm attorney Craig Gerard.