+ Reply to Thread
Results 1 to 12 of 12
  1. #1
    JustACAGuy95621 is offline Junior Member
    Join Date
    Feb 2012
    Posts
    3

    Child Support Aarrears seizure from an Estate bank account

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

    I live in CA and have CS arrears in excess of $10,000. My mother passed away within the last month and named me executor of her estate. I have opened an Estate bank account, using the Estate tax ID, to transfer the funds from her personal bank account in to so that I may finalize her outstanding affairs. In December, the state seized $100 out of my personal bank. This was not all of my available funds, but they didn't leave much.

    My question is this: Can Child Support Enforcement seize money in an estate account that I am executor of?

    Any advice offered is appreciated. Thank you.
  2. #2
    CSO286 is offline Senior Member
    Join Date
    Jun 2010
    Location
    Once upon a time, far, far, away...
    Posts
    5,369
    Quote Originally Posted by JustACAGuy95621 View Post
    What is the name of your state (only U.S. law)? CA

    I live in CA and have CS arrears in excess of $10,000. My mother passed away within the last month and named me executor of her estate. I have opened an Estate bank account, using the Estate tax ID, to transfer the funds from her personal bank account in to so that I may finalize her outstanding affairs. In December, the state seized $100 out of my personal bank. This was not all of my available funds, but they didn't leave much.

    My question is this: Can Child Support Enforcement seize money in an estate account that I am executor of?

    Any advice offered is appreciated. Thank you.

    Is your name/SSN on the account?

    If yes, then it is possible, although you will have the opportunity to claim the funds as exempt d/t the funds belonging to the estate, AS LONG as you can prove it.
  3. #3
    tranquility is offline Senior Member
    Join Date
    Mar 2006
    Posts
    18,830
    You can successfully fight any seizure where you are the legal owner and not the beneficial owner. In fact, you have a fiduciary duty to fight it if it were to hurt any of the beneficiaries.

    HOWEVER, they CAN get to what YOU have a right to.
  4. #4
    nextwife is offline Senior Member
    Join Date
    Jan 2003
    Posts
    24,357
    If the account is titled properly and has the estate SS #, it would be inapproriate for CS to interfere with an estate account for a decedant that owed no CS. THe decedant's creditors have FIRST rights to any estate assets, and other beneficaries to their shares, before the creditor of a beneficiary has any rights.
    Last edited by nextwife; 02-07-2012 at 06:03 PM.
  5. #5
    mistoffolees is offline Senior Member
    Join Date
    Mar 2008
    Posts
    21,315
    Quote Originally Posted by nextwife View Post
    If the account is titled properly and has the sestate SS #, it would be inapproriate for CS to interfere with an estate account for a decedant that owed no CS. THe decedant's creditors have FIRST rights to any estate assets, and other beneficaries to their shares, before the creditor of a beneficiary has any rights.
    Your statement could be even stronger than that. The state has no right to seize money from an estate account even if the beneficiary owes child support and even if all the other creditors have been paid. The state can only seize money after it is transferred from the estate account into the beneficiary's account.
  6. #6
    nextwife is offline Senior Member
    Join Date
    Jan 2003
    Posts
    24,357
    Quote Originally Posted by mistoffolees View Post
    Your statement could be even stronger than that. The state has no right to seize money from an estate account even if the beneficiary owes child support and even if all the other creditors have been paid. The state can only seize money after it is transferred from the estate account into the beneficiary's account.
    Exactly: The estate must fulfill it's fiduciary reposnsibilities, and until distribution at the end of probate, one cannot know that all expenses and taxes are addressed. Nothing belongs to any beneficiary until the etsate takes care of all of it's obligations. And estate assets belong to the beneficaries only upon distribution. Until that time, it is money of the estate.
  7. #7
    tranquility is offline Senior Member
    Join Date
    Mar 2006
    Posts
    18,830
    Here's what will happen if the state finds out. The administrator will receive a notice of lien for the beneficiary. The administrator, after the debts are paid, will pay the lien. It's not a seizure from the account, but a payment from the beneficiary's rights. Ownership transfers immediately, even if the actual transfer happens later. (After probate.)

    THE STATE CAN GET WHAT THE BENEFICIARY HAS RIGHTS TO.

    It can be even worse. In Cabral v. Soares, 69 Cal.Rptr.3d 242, mom is dying and son has back child support. Son and daughter convince mom to change her will so daughter gets all the inheritance. There is an agreement between daughter and son to transfer the assets to him later.

    The appellate court found a constructive trust and forced daughter to disgorge the assets to child support.
  8. #8
    mistoffolees is offline Senior Member
    Join Date
    Mar 2008
    Posts
    21,315
    Quote Originally Posted by tranquility View Post
    Here's what will happen if the state finds out. The administrator will receive a notice of lien for the beneficiary. The administrator, after the debts are paid, will pay the lien. It's not a seizure from the account, but a payment from the beneficiary's rights. Ownership transfers immediately, even if the actual transfer happens later. (After probate.)
    Yes, that's true. But the state can NOT seize money from the account, at least not without a separate court order.
  9. #9
    JustACAGuy95621 is offline Junior Member
    Join Date
    Feb 2012
    Posts
    3
    Thank you all who replied. You've pretty much confirmed what I believe (and hoped) the situation to be and have eased the fears of what could occur.

    The account is listed as "Estate Checking Account" and was opened with the federally issued estate tax ID number, not my SS#. I am on the account as the signer or personal representative.

    I have never considered these funds anything but "mom's" or her estate funds and have every intention of settling the child support arrears once the estate business is concluded and distribution of remaining funds occurs.

    Again, thank you for taking the time to answer my question.
  10. #10
    Blue Meanie is offline Senior Member
    Join Date
    Jul 2005
    Location
    Massachusetts
    Posts
    24,444
    Quote Originally Posted by JustACAGuy95621 View Post
    Thank you all who replied. You've pretty much confirmed what I believe (and hoped) the situation to be and have eased the fears of what could occur.

    The account is listed as "Estate Checking Account" and was opened with the federally issued estate tax ID number, not my SS#. I am on the account as the signer or personal representative.

    I have never considered these funds anything but "mom's" or her estate funds and have every intention of settling the child support arrears once the estate business is concluded and distribution of remaining funds occurs.

    Again, thank you for taking the time to answer my question.
    Hopefully you will not make the "mistake" to put your own funds in this account in order to continually avoid paying for the support of your children.
  11. #11
    JustACAGuy95621 is offline Junior Member
    Join Date
    Feb 2012
    Posts
    3
    Quote Originally Posted by Blue Meanie View Post
    Hopefully you will not make the "mistake" to put your own funds in this account in order to continually avoid paying for the support of your children.
    Hopefully you won't make the "mistake" of thinking that you were actually helpful. Your comment was not only unnecessary but judgmental and assuming as well. You know nothing about me; what type of person or father I am to my child or have any clue as to what my entire situation is. I do realize there are people out there that would take measures to avoid their financial and parental responsibilities, but until you know for a fact that I am one of those people don't make the "mistake", (or an ass of yourself), in assuming that I am one.
  12. #12
    Blue Meanie is offline Senior Member
    Join Date
    Jul 2005
    Location
    Massachusetts
    Posts
    24,444
    Quote Originally Posted by JustACAGuy95621 View Post
    Hopefully you won't make the "mistake" of thinking that you were actually helpful. Your comment was not only unnecessary but judgmental and assuming as well. You know nothing about me; what type of person or father I am to my child or have any clue as to what my entire situation is. I do realize there are people out there that would take measures to avoid their financial and parental responsibilities, but until you know for a fact that I am one of those people don't make the "mistake", (or an ass of yourself), in assuming that I am one.
    Have a nice day.

Similar Threads

  1. Foreclosure- Garnishment and Bank Account Seizure?
    By richardlepre in forum Mortgages, Refinancing & Foreclosure
    Replies: 11
    Last Post: 09-22-2008, 11:11 AM
  2. Bank Account Seizure by IRS
    By SanFranGirl in forum Tax Law
    Replies: 0
    Last Post: 09-08-2005, 09:30 AM
  3. Seizure/bank account and Pell $ from 95' cc
    By bourbongirl in forum Debt Collections
    Replies: 0
    Last Post: 07-21-2005, 09:36 AM
  4. Seizure of Bank Account
    By greatdane in forum Business Bankruptcy
    Replies: 1
    Last Post: 06-17-2004, 04:10 PM
  5. bank account seizure
    By nailgun in forum Banking & Credit Cards
    Replies: 2
    Last Post: 05-01-2003, 04:30 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  

© 1995-2012 Advice Company, All Rights Reserved

FreeAdvice® has been providing millions of consumers with outstanding advice, free, since 1995. While not a substitute for personal advice from a licensed professional, it is available AS IS, subject to our Disclaimer and Terms & Conditions Of Use.