What is the name of your state? - New York
My father's assets were held in a living trust, managed by a bank, for about
fifteen years. He died two years ago, and I am one of two beneficiaries of
the will. The will was clear and has not been contested. My problem is that
the bank is executor of the will, and has been unreasonably delaying settlement
of the will and distribution of my inheritance to me. All my attempts to push
for settlement have been met with passive resistance.
I have a lawyer who has explained my legal options, but I have not thus far
initiated court action. My question(s) here is an attempt to understand the
bank's (lack of) motivation.
I suspect that the underlying problem is that the bank is in a conflict of
interest position. Banks borrow money from their depositors, leverage those
deposits as collateral for further borrowing in the financial system, and
lend/invest the larger pool of assets at higher rates. Thus my father's
estate is actually assets held in the bank's name, available for re-lending,
leveraging, meeting reserve requirements, and generally reinvestment to
contribute to the bank's profit objectives.
Are my assumptions valid, or are there flaws in my reasoning? I don't know
much about regulation of bank trust activities, but perhaps there are laws
restricting bank's use of trust assets in a way that makes hanging on to
these assets less attractive. If that's the case I'm at a loss to explain
the bank's behavior - the bank is no longer collecting fees for management
of the assets, which were converted to cash equivalents shortly after my
father's death.
I would like to find a way to apply pressure toward closure without going
to court - partly because I think a court proceeding would be lengthy and
would further delay settlement, and partly because the bank has co-opted
the services of my father's lawyer, who has other business with the bank,
and is charging that lawyer's fees to the estate.
My father's assets were held in a living trust, managed by a bank, for about
fifteen years. He died two years ago, and I am one of two beneficiaries of
the will. The will was clear and has not been contested. My problem is that
the bank is executor of the will, and has been unreasonably delaying settlement
of the will and distribution of my inheritance to me. All my attempts to push
for settlement have been met with passive resistance.
I have a lawyer who has explained my legal options, but I have not thus far
initiated court action. My question(s) here is an attempt to understand the
bank's (lack of) motivation.
I suspect that the underlying problem is that the bank is in a conflict of
interest position. Banks borrow money from their depositors, leverage those
deposits as collateral for further borrowing in the financial system, and
lend/invest the larger pool of assets at higher rates. Thus my father's
estate is actually assets held in the bank's name, available for re-lending,
leveraging, meeting reserve requirements, and generally reinvestment to
contribute to the bank's profit objectives.
Are my assumptions valid, or are there flaws in my reasoning? I don't know
much about regulation of bank trust activities, but perhaps there are laws
restricting bank's use of trust assets in a way that makes hanging on to
these assets less attractive. If that's the case I'm at a loss to explain
the bank's behavior - the bank is no longer collecting fees for management
of the assets, which were converted to cash equivalents shortly after my
father's death.
I would like to find a way to apply pressure toward closure without going
to court - partly because I think a court proceeding would be lengthy and
would further delay settlement, and partly because the bank has co-opted
the services of my father's lawyer, who has other business with the bank,
and is charging that lawyer's fees to the estate.