Wells Fargo joint account.
Posted: Wed Mar 19, 2014 12:35 pm
Catherine et al,
I am going to amend SOFA 14 and contact the trustee before the 341. I have declarations prepared for the debtor and his father that the account was set up for estate administration purposes only; that the debtor has made no deposits or withdraws and did not even know about two of the three accounts. As to amending schedule B, I am asserting that pursuant to 541(b)(1) and Ca Prob Code 5301 the fathers bank accounts are not included as property of the estate; and should be listed under SOFA 14 but not Schedule B.
Marvins suggestion to look at probate code 5132-5134 is very helpful. Probate code 5301 delineates a rule of ownership in proportion to net contributions which excludes the joint accounts from the bankruptcy estate.
My concern is that the accounts add up to about $25k and the chapter 7 trustee may not want to step up and make that decision on her own, forcing the debtor file a motion to exclude the accounts from the estate. So do I wait to let the trustee make the first move or should I file a preemptive motion. I would welcome any thoughts on such a motion.
11 U.S.C 541(b) Property of the estate does not include (1) any power that the debtor may exercise solely for the benefit of an entity other than the debtor;
Cal Prob code 5301(a) An account belongs, during the lifetime of all parties, to the parties in proportion to the net contributions by each to the sums on deposit, unless there is clear and convincing evidence of a different intent.
Best regards
Larry Webb
State Bar of California 229344
Central District California
"A Debt Relief Agency"
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