Bank gave funds based on fraufulent information

[DNC2933]

What is the name of your state (only U.S. law)?Texas

A person wrote letter to a national bank claiming she (a new wife) was the administrator of the deceased estate. As a result, the bank sent her a check from a savings account in the amount of $110,000. The account holder died intestate and an administrator for the estate had not been named (it is now in Probate Court to name an administrator). It has cost $25,000 in attorney fees to get everything in order. 2/3 of the $110,000 goes to the child and only 1/3 to the new wife who wrote the false information.

Is the bank responsible for the attorney fees or liable in another way?What is the name of your state (only U.S. law)?

[JETX]

Originally Posted by DNC2933

Is the bank responsible for the attorney fees or liable in another way?

Depends on the FULL facts. A bank isn't supposed to release funds to a 'personal representative' without an order or 'letter testamentary' issued by the probate court. If they failed to comply with that requirement, they COULD be liable due to negligence.

However, if they released those funds under a court order or letter (and they had no reason to suspect the submittal), then they would likely NOT be liable as there would not be negligence.