Question

Alice, a resident of Illinois, dies with a valid will. All of her real and personal property is located in Illinois except for a joint tenants with rights of survivorship account held with her sister in a bank in Indiana. In distributing Alice's estate, which laws apply?

a. All assets distributed under Illinois law.
b. All assets distributed under Indiana law.
c. Some assets distributed under each Illinois and Indiana laws.
d. It depends on which state Alice was in at her death.

Answer 1

In distributing Alice's estate with a valid will, Illinois law applies, except for the joint bank account in Indiana, which passes directly to her sister under Indiana law due to rights of survivorship.

Step-by-step explanation:

When Alice, a resident of Illinois, passes away with a valid will, the distribution of her estate is primarily governed by the laws of Illinois, where her will would be executed and her real and personal property are located. However, the joint tenancy with rights of survivorship account held with her sister in an Indiana bank falls under Indiana jurisdiction. Upon Alice's death, the rights of survivorship mean that this account passes directly to the co-owner, her sister, without being part of the probate process in Illinois. Other assets not subject to such survivorship provisions would be distributed according to Alice's will under Illinois law.

In the case where someone dies intestate (without a will), state intestacy laws control how their assets are passed down. For trust assets, which are outside of the probate process, the terms set by the deceased in the trust document will dictate asset distribution. Indiana laws will apply to the account in question because joint accounts with rights of survivorship are governed by the laws of the state where the account is located.