Q: CA. Wife and father had joint acct. He passed, and the account got levied for debt he owed. Is this exempt, her acct now
California. Wife and her father had a joint account that they both deposited to and utilized. He passed last June, and we just received a notice of levy on the account. The bank is temporarily holding the money for 10 days. It is my understanding that after he passed, the account is now hers, and they cannot put a levy on it. Is this the case?
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A:
Yes, your understanding is correct. Since the bank account was jointly held between your wife and her now deceased father, once he passed away the account became your wife's individual account by operation of law. Here are the key reasons why the account levy is invalid:
• Under California probate code Section 5302, sums remaining on deposit at the death of a party to a joint account belong to the surviving party as against the estate of the decedent. So your wife assumed full ownership upon her father's passing.
• As the account is now in your wife's name alone, a levy against her deceased father would have no validity. Creditors can only attach assets that belong to their debtor.
• Joint bank accounts with rights of survivorship have strong protections under California law. The creditor has no claim to her inherited funds.
Your wife should formally contest the levy with the bank and creditor immediately. An affidavit stating she assumed sole legal ownership upon her father's death should be sufficient initially. If further issues arise, consult a probate/estate attorney for assistance. But the levy should have no legal merit.
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