Opinion ID: 1176286
Heading Depth: 1
Heading Rank: 2

Heading: Invasion of Multiple-Party Accounts

Text: Having decided that the widow's right to exempt property is absolute and that the estate of Mr. Wagley was insolvent, we next consider whether the probate court correctly denied an invasion of the multiple-party accounts in order to satisfy the claim or whether the allowance is mandated by the statute, leaving the court no discretion to deny the claim. Again, the UUPC is unambiguous. Section 75-6-107 provides in pertinent part: No multiple-party account will be effective against an estate of a deceased party to transfer to a survivor sums needed to pay debts, taxes, and expenses of administration, including statutory allowances to the surviving spouse, minor children and dependent children, if other assets of the estate are insufficient. A surviving party, P.O.D. payee, or beneficiary who receives payment from a multiple-party account after the death of a deceased party shall be liable to account to his personal representative for amounts the decedent owned beneficially immediately before his death to the extent necessary to discharge the claims and charges mentioned above remaining unpaid after application of the decedent's estate. The editorial board comment further clarifies why the remedy of this section was needed and what claims are encompassed by statutory allowances. The sections of this chapter authorize transfers at death which reduce the estate to which the surviving spouse, creditors and minor children normally must look for protection against a decedent's gifts by will. Accordingly, it seemed desirable to provide a remedy to these classes of persons which should assure them that multiple-party accounts cannot be used to reduce the essential protection they would be entitled to if such accounts were deemed a special form of specific device. Under this section a surviving spouse is automatically assured of some protection against a multiple-party account if the probate estate is insolvent; rights are limited, however, to sums needed for statutory allowances. The phrase statutory allowances includes the homestead allowance under section 75-2-401, the family allowance under section 75-2-403, and any allowance needed to make up the deficiency in exempt property under section 75-2-402. See also Simmons v. Ewing, 96 Idaho 380, 529 P.2d 776 (1974), where the Supreme Court of Idaho affirmed the probate court's award of exempt property allowance from separate property as the only available source for funds for the allowance. Based on the above, we hold that it was error for the probate court to deny the widow her exempt property claim from the multiple-party accounts in the name of the decedent's daughter where the estate was insufficient to satisfy the claim.