Banking Issue

[momm2500]

What is the name of your state? PA

parents owned a small business. both mom and dad had the rights to the business checking account and their names were on the signature cards. it appears brother (who eventually owned business after parents death) has been writing checks and withdrawing money for 3 years prior to parents death. dad was incopacitated and mom did not know what was going on. Brother was good friends with the people at the bank. Is there anything I can do on this? Can a bank just let anyone sign checks? Should I report this as part of elder financial abuse? Brother is trying to claim that mom had a loan on the business and her estate has to pay it back. mom did not have ownership of the business only dad did (per the state for incorporation purposes). would i be able to sue the bank for negligance? he stole over $25,000 out of the business.

[Antigone*of*Greece]

Originally Posted by momm2500

What is the name of your state? PA

parents owned a small business. both mom and dad had the rights to the business checking account and their names were on the signature cards. it appears brother (who eventually owned business after parents death) has been writing checks and withdrawing money for 3 years prior to parents death. dad was incopacitated and mom did not know what was going on. Brother was good friends with the people at the bank. Is there anything I can do on this? Can a bank just let anyone sign checks? Should I report this as part of elder financial abuse? Brother is trying to claim that mom had a loan on the business and her estate has to pay it back. mom did not have ownership of the business only dad did (per the state for incorporation purposes). would i be able to sue the bank for negligance? he stole over $25,000 out of the business.

This is more than just a banking issue and there are too many questions about the corporation and the bank set up to give you a solid answer. I would suggest you help your mom by getting her a good attorney.

I'm sorry I wish I could have been more help.

I'm sure the Seniors here can give you a bit more guidance about the legal aspect.

take care, ana

[momm2500]

the problem is mom passed away and now this stuff is coming to light!

[seniorjudge]

Originally Posted by momm2500

the problem is mom passed away and now this stuff is coming to light!

The brother wrote the checks on the business that he came to own?

[tanja53]

Originally Posted by seniorjudge

The brother wrote the checks on the business that he came to own?

The brother wrote checks 3 years before he owned the buisness.

[Zigner]

Originally Posted by tanja53

The brother wrote checks 3 years before he owned the buisness.

Then the business has the right to recover...see where I'm going?

[tanja53]

Originally Posted by Zigner

Then the business has the right to recover...see where I'm going?

My answer is no.
I dont know where you are going since you have written anything.
The brother shouldnt have written any checks if he was not on the account.

The borther should pay back the estate unless he has some paper work that his parents signed giving him the rights to write checks.

That is why the bank has signature cards so not just anybody can walk into a bank and start taking out money from somebodys account.

[Zigner]

Originally Posted by tanja53

My answer is no.
I dont know where you are going since you have written anything.
The brother shouldnt have written any checks if he was not on the account.

The borther should pay back the estate unless he has some paper work that his parents signed giving him the rights to write checks.

That is why the bank has signature cards so not just anybody can walk into a bank and start taking out money from somebodys account.

The business (the one your brother now owns) has a right to recover the money from the person who used it (your brother).
Is it any more clear now?

[tanja53]

Originally Posted by Zigner

The business (the one your brother now owns) has a right to recover the money from the person who used it (your brother).
Is it any more clear now?

It is not my brother.

And the sibbling who is the OP has the rigth to be concerned.
The brother, who now owns the buisness, didnt have the legal right to write checks in connection to the buisness before he took over it.

So of cause he should have to pay back.
Unless he can prove with legal documents that the older parents had given him permission on paper to do so.

[Texas Pooh]

Let's try and make it simple, and make sure I understand the issue.

Mom and Dad have a son, S. S writes checks from the business account of parent's business.

After Mom and Dad both die, S inherits the business. I am assuming that S inherited all of the stock of the business.

Assuming that is correct, the issue is: who is entitled to recover from S for the missing money?

The answer is the business, only. It is the business that the money was taken from. Only the officers of the business have any standing (legal ability) to assert a claim. Thus, S (who now owns the business) would have to sue himself. As suggested by Zig, this won't happen.

The claim does not belong to Mom's estate, unless there are more facts that we don't understand about how S inherited the business. If there are, please post and we'll try to sort it out.

[tanja53]

Originally Posted by Texas Pooh

Let's try and make it simple, and make sure I understand the issue.

Mom and Dad have a son, S. S writes checks from the business account of parent's business.

After Mom and Dad both die, S inherits the business. I am assuming that S inherited all of the stock of the business.

Assuming that is correct, the issue is: who is entitled to recover from S for the missing money?

The answer is the business, only. It is the business that the money was taken from. Only the officers of the business have any standing (legal ability) to assert a claim. Thus, S (who now owns the business) would have to sue himself. As suggested by Zig, this won't happen.

The claim does not belong to Mom's estate, unless there are more facts that we don't understand about how S inherited the business. If there are, please post and we'll try to sort it out.

Since the OP writes brother it means that there is sibblings.
And the sibbling (s) have been informed that the brother have taken out money from thier parents buisness without them knowing.
So I can understand thet sibbling(s) are not very happy.
$ 25.000 is a lot of money.

[Zigner]

Originally Posted by tanja53

Since the OP writes brother it means that there is sibblings.
And the sibbling (s) have been informed that the brother have taken out money from thier parents buisness without them knowing.
So I can understand thet sibbling(s) are not very happy.
$ 25.000 is a lot of money.

Tanja -

It doesn't matter. Let's say that the one brother inherited 100% of a business worth $5,000,000. But, that same brother (you know - the one who OWNS the business) owes the company $25,000 from before he inherited it. So, tell me, who gets to collect the $25,000 now?
I'll give you a hint - the answer is the BUSINESS.

[tanja53]

Originally Posted by Zigner

Tanja -

It doesn't matter. Let's say that the one brother inherited 100% of a business worth $5,000,000. But, that same brother (you know - the one who OWNS the business) owes the company $25,000 from before he inherited it. So, tell me, who gets to collect the $25,000 now?
I'll give you a hint - the answer is the BUSINESS.

I do know what you are saying.

I just never liked when people go behind each others back.
I dont think it very nice.But the world is not very nice all the time.

So now the brother has a buisness with $ 25.000 less in it

[Zigner]

Originally Posted by tanja53

So now the brother has a buisness with $ 25.000 less in it

Tanja -

SO WHAT? It's that same brother's business now!

[tanja53]

Originally Posted by Zigner

Tanja -

SO WHAT? It's that same brother's business now!

The SO WHAT is that maybe the buisness was going to one brother but some of money should have beeen divided between the sibblings.

We dont now if that was the case.

Anyway this could mean that one brother got more when he supposed to.
And that the other sibblin(s) feel cheated.