Thursday, February 12, 2015

CONVENIENCE ACCOUNTS

"Unlike the joint account, the convenience account does not grant anyone rights of survivorship over your assets. As such, any and all assets within your convenience account come back into your NY estate and are treated as probatable assets passing to your heirs after you are gone. Convenience accounts thereby afford a principle the right to bestow upon an agent the power to pay bills and expenses out of that account for their benefit without gifting the money away to the agent."

From http://www.queensestatelaw.com/Queens-Estate-Planning-Blog/2014/July/What-is-a-convenience-account-Estate-tool.aspx

And it appears that these type of accounts are not just an issue with estate planning. Banking Law Section 678 authorizing these accounts was enacted in 1991 and with respect to equitable distribution in matrimonials, "convenience" accounts, if funded by "separate property," will remain the separate property of the depositor

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