By: Eric J. Sachtjen, Shareholder and Cayden C. Hennessey, Summer Associate
A single oversight in how a bank account is titled can unravel years of careful estate planning, as illustrated by a recent unpublished Washington Division I Court of Appeals case, In re Matter of the John E. Thompson and Darleene P. Thompson Living Trust (May 12, 2025). This case addressed an issue regarding the establishment of a joint account with right of survivorship and its impact on the client’s estate plan.
Background
John and Darleene Thompson created a living trust with their children as primary beneficiaries. After Darleene’s passing, John established a new trust in his name and added his granddaughter, Jennifer Garcia, to certain bank accounts to assist with bill payments. At the bank, a form was signed with a pre-checked box designating the account as a joint account with right of survivorship. Following John’s death, Garcia claimed the funds as the surviving depositor, prompting litigation from the Thompson children, who argued John did not intend to create such an account.
Joint Tenancy with Right of Survivorship
Under RCW 30A.22.100(3), a rebuttable presumption exists that funds in a joint account with right of survivorship belong to the surviving depositor, unless clear and convincing evidence demonstrates a contrary intent at the time the account was created. The Thompson children needed to provide clear and convincing evidence—beyond a preponderance of the evidence but less than reasonable doubt—that John did not intend to grant Garcia survivorship rights.
Court’s Analysis
The Court of Appeals affirmed the trial court’s finding that clear and convincing evidence rebutted the presumption of a joint tenancy with right of survivorship. The court considered three key factors:
- Bank Meeting Circumstances: The pre-checked survivorship box on the form lacked explanation. No discussions about survivorship rights occurred between John, Garcia, or bank staff. Garcia believed she was added only to assist with bills, and the trial court found a bank employee’s testimony about discussing survivorship rights not credible.
- John’s Testamentary Intent: John consistently shared his estate plans with his family, naming his children as beneficiaries across multiple accounts. His failure to mention any change to favor Garcia suggested the account designation was inconsistent with his long-standing plans.
- John’s Health: John’s poor vision, hearing, and cognitive issues impaired his ability to understand the form, further supporting the lack of intent to create a survivorship account.
Holding
The Court of Appeals upheld the trial court’s decision, concluding that the Thompsons provided clear and convincing evidence of John’s contrary intent. As a result, no joint account with right of survivorship was created, and the funds did not pass to Garcia. The court imposed a constructive trust to ensure the funds were distributed according to John’s true intentions.
Implications
This case underscores the importance of clear documentation and communication when establishing joint accounts. The case also serves as a cautionary tale about pre-checked boxes on bank forms, which can inadvertently alter an account’s legal status if not carefully reviewed. For individuals setting up accounts, it is critical to review forms carefully and confirm account titling with their estate planning attorney to ensure alignment with their overall estate plan, especially when health or cognitive issues may affect comprehension. For estate planners and attorneys, In re Thompson highlights the need for thorough discussions with clients about the titling of accounts to avoid unintended consequences in account designations.
While this informational publication is about legal issues, it is not legal advice. Legal information is not the same as legal advice and is not a sufficient substitute for or replace the advice or representation of a licensed attorney. If you desire an interpretation of any of the legal principles addressed herein, we recommend you consult with a licensed attorney.
Paine Hamblen, P.S., based in Spokane, Washington, practices in estate planning, trust administration, tax compliance, and business advisory services to help clients achieve their legacy goals. For assistance with a particular legal challenge you may be facing, call us at 509-455-6000.
Eric J. Sachtjen is a Shareholder at Paine Hamblen, P.S., whose practice includes tax compliance, estate planning, and business advisory services.
Cayden C. Hennessey is a Summer Associate at Paine Hamblen, P.S., who recently completed his second year at Gonzaga University School of Law.
