Before my mother passed, she added my brother and me to her checking account as co-owners with survivorship rights. After our mother passed my brother withdrew all of the money from the account.
According to the bank this was perfectly legal since he co-owned the account. I thought the money would have been divided equally between us after her death, not go to whoever got to the bank first. Was this legal for him and the bank to do? (The bank is in Texas.)
Untitled
The bank is correct. In fact, it would have been just as legal if you had been the individual who took all the money from the account.
A joint account with rights of survivorship allows all of the joint owners complete access to the account. All of the funds in the account are equally accessible to each joint owner, and any of the joint owners has the right to withdraw all of the funds and close the account, without a need for approval by the other owners.
When your mother died, the account continued to be a joint account, but with only two owners: your brother and you. Each of you had the right to close the account without the other's cooperation.
All of that addresses the bank's position. What remains is for you and your brother to work out how the money should be apportioned between you. Obviously, if this can be done amicably, it will benefit all involved.
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The bank is correct. In fact, it would have been just as legal if you had been the individual who took all the money from the account.