Proving you were pushed out as beneficiary might be difficult
Q. I just celebrated my 90th birthday. Recently, my cousin died, believing that she had named me as beneficiary on her credit union account. That’s what she told me a few days before she died. However, I just received a letter from the attorney for her estate telling me I would not be getting anything because the account was actually a joint account held with a new friend my cousin had recently made. That friend is also the executrix of her estate. What can I do?
A. If you believe that your cousin’s new friend deliberately changed the account so that it would pass to her and not to you, you should hire an attorney to look into the matter further and perhaps sue the new friend.
Of course, hiring a lawyer may be expensive, and there is no certainty you will prevail. Plus, the friend already has your cousin’s money.
Proving your case might be difficult, as it’s your word against the friend’s word, unless you can find evidence to support your position.
Q. Many years ago, I opened custodial accounts to save for my children to go to college. The stocks I purchased have
done very well and are worth far more than college will cost. Can I take back the excess funds?
A.
No, you cannot.
Even though you have control of the accounts, and there is no one to prevent you from taking back the shares, doing so would be illegal. You would be stealing from your children.
Your children could sue you to recover the stolen property, and they would probably win. Of course, your children would likely never know you took the stocks, and they probably would never sue you.
You have other options. You could begin using the custodial accounts to pay for things for your children that you presently pay for with your own money. For instance, you could pay for vacations, cars and after-school or summer activities.
Q. A few years ago, my mother gave me 250 shares of a publicly traded stock. What is my cost basis? Is it the value of the stock when she gave it to me?
A.
If your mother was alive when she made the gift, your cost basis will be the same as her original cost basis. If your mother gave you the stock at her death, your cost basis will be equal to the value of the stock on her date of death.
However, there are some exceptions that might apply. Therefore, you should consult an accountant to help you figure out the exact answer to your question.
The information in this column is intended to provide a general understanding of the law, not legal advice. Readers with legal problems, including those whose questions are addressed here, should consult attorneys for advice on their particular circumstances. Ronald Lipman of the Houston law firm Lipman & Associates is board-certified in estate planning and probate law by the Texas Board of Legal Specialization. Email questions to stateyourcase@lipmanpc.com.