22 Jun “X” MARKS THE SPOT – MARK WITHOUT INITIALS SUFFICIENT FOR ACCOUNT TO GO TO SURVIVING SPOUSE (NOT CHILDREN)
A Texas appellate court has determined that a signature card whereby an “X” in a box titled “JTWROS” on an account of a married couple was sufficient for the account to pass to the survivor even though it was not initialed by them and the definition of “JTWROS” was not on the signature card. “JTWROS” stands for joint tenants with right of survivorship. If the account is simply a joint account, the community property interest of the first spouse to die would instead pass by the deceased spouse’s will (and if no will, then by Texas laws of intestacy) instead of all passing to the surviving spouse.
Robert and Janice Manley were married in 1993. Each had children from a prior marriage. Robert opened up an account in 2001 in his name only. Janice began to distrust him in 2003. Perhaps that is the reason that he added Janice to the account at Merrill Lynch. Janice died in 2019. Robert survived her.
Robert’s attorneys presented a Client Relationship Agreement (“CRA”) with Merrill Lynch indicating the accounts were joint with right of survivorship. Several different types of joint accounts were listed and an “X” was marked in the box which indicated “JTWROS”. Another signature card presented by Janice’s attorneys had no “X” marked on any joint accounts.
A couple of Janice’s children argued that since it did not include initials by the “X”, that her community property interest would pass by her will which named her children as her beneficiaries (not Robert). They also argued there was no definition of “JTWROS” on the form.
Merrill Lynch’s policy is to confirm everything on the CRA a couple of weeks after being signed and to permit a financial advisor to mark “X” at the direction of the customer. Monthly statements regularly sent to the customer also showed the type of account. The beneficiary designation form indicated “JTWROS” on the CRA.
Robert had some dementia at the time of the trial and the time of his deposition prior to that, but he thought the accounts would go to the survivor.
The court ruled that the CRA form signed by Robert and Janice indicated the accounts were joint with right of survivorship and thus would pass to Robert. The only question was that their intent and was it made without their consent. The jury concluded that it was their intent. The jury also found that the failure to mention the account number on the form was immaterial.
Janice’s children also argued there needed to be a separate agreement signed by both parties to make it a joint account with right of survivorship. The court concluded that strict interpretation need not be followed as they determined that was not the legislative intent based on prior court cases. The court further found although “JTWROS” was not defined on the page with an “X”, the packet they were given did define it. Monthly statements also showed the intent of the parties as no one tried to change the titling of the account for 16 years.
The moral is always look at your signature cards as it will make a difference on how assets are transferred at death.
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