What would happen to a CD account in probate (California)?
June 26, 2023 12:01 PM Subscribe
If a person has a trust established, but created a substantial Certificate of Deposit account that is not transferred to the trust, what will happen in probate upon their passing?
In this scenario the trust has a clearly identified trustee and all inheritances are also clearly identified. But the CD, again, is outside the trust. In the event of the person's passing, what would happen? Let's say on the spectrum from "The Money is Considered the State's Property Entirely" to "The Money Goes Through a Long Process But Ultimately Goes to the Trustee to Figure Out" to "Something Else Altogether?"
In this scenario the trust has a clearly identified trustee and all inheritances are also clearly identified. But the CD, again, is outside the trust. In the event of the person's passing, what would happen? Let's say on the spectrum from "The Money is Considered the State's Property Entirely" to "The Money Goes Through a Long Process But Ultimately Goes to the Trustee to Figure Out" to "Something Else Altogether?"
Best answer: This is not legal advice and I am not your lawyer. It depends. If the person has a "pour over" will, then their assets at the time of death will transfer to the trust. (In California, there is a cap of I think like $150K on assets that can be poured over.) If they don't, then it's subject to the normal probate process.
posted by praemunire at 12:11 PM on June 26, 2023
posted by praemunire at 12:11 PM on June 26, 2023
Does the CD have a beneficiary specified?
posted by Blue Jello Elf at 3:20 PM on June 26, 2023
posted by Blue Jello Elf at 3:20 PM on June 26, 2023
Response by poster: The CD does not have a beneficiary specified.
posted by kensington314 at 3:46 PM on June 26, 2023
posted by kensington314 at 3:46 PM on June 26, 2023
Best answer: I am a CA estate and probate lawyer, but not your CA estate and probate lawyer.
Answer above by Praemunire is misleading. The cap (now 184,000 and change) is for pouring over to the trust without having to go through probate. Called a "small estate affidavit" under probate code 13100 if you want to google it. This is so the courts aren't clogged with $2,000 checking accounts being probated.
Assuming the CD is over the cap and the person has a pourover will (which says "All my assets passing under my Will go into my trust"), then the CD, would go through the long and annoying probate process and ultimately end up in the trust.
Most people who have a CA trust also have a pourover will. But if the person didn't get a pourover Will, and the CD is over the cap, the CD will pass to the intestate heirs, after the long and annoying probate process.
posted by bluesky78987 at 7:10 AM on June 27, 2023
Answer above by Praemunire is misleading. The cap (now 184,000 and change) is for pouring over to the trust without having to go through probate. Called a "small estate affidavit" under probate code 13100 if you want to google it. This is so the courts aren't clogged with $2,000 checking accounts being probated.
Assuming the CD is over the cap and the person has a pourover will (which says "All my assets passing under my Will go into my trust"), then the CD, would go through the long and annoying probate process and ultimately end up in the trust.
Most people who have a CA trust also have a pourover will. But if the person didn't get a pourover Will, and the CD is over the cap, the CD will pass to the intestate heirs, after the long and annoying probate process.
posted by bluesky78987 at 7:10 AM on June 27, 2023
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posted by saeculorum at 12:11 PM on June 26, 2023 [1 favorite]