bank's obligation upon customer's death

[lostmoney]

If a bank knows of a depositor's death, knows who the estate's executor is, and has the opportunity to inform the executor of the existence of the decedent's account, does the bank have a legal obligation to inform him of the account? This is in New York.

 

[HomeGuru]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by lostmoney:
If a bank knows of a depositor's death, knows who the estate's executor is, and has the opportunity to inform the executor of the existence of the decedent's account, does the bank have a legal obligation to inform him of the account? This is in New York.<HR></BLOCKQUOTE>

Yes, the bank is obligated to exhaust all efforts to notify the executor or next of kin to inform the representative as to the existence of the account and to inquire the disposition of same. If the funds unclaimed within a specified time the State gets it through a process known as escheat.

 

[lostmoney]

Is there a statute or regulation I can quote?

 

[lostmoney]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by lostmoney:
If a bank knows of a depositor's death, knows who the estate's executor is, and has the opportunity to inform the executor of the existence of the decedent's account, does the bank have a legal obligation to inform him of the account? This is in New York.<HR></BLOCKQUOTE>

Thanks for the info, but let me be more precise regarding the info:
Administratrix of the estate went to the bank to close decedent's checking account that she knew existed. She was told that she needed to provide further documentation re: her position as administratrix. She was aware that the amount in that account was very small. Because she (and her husband, the decedent) lived in another country and because the amount was so small, she didn't pursue the matter.
Three years later, she found out that her husband also had an investment account maintained by the bank. The amount in that account was very significant. Proceeds from the account continued to be reinvested even though the bank had been given a death certificate. Follwing a change in division management, the bank realized the "situation" and notified the wife/administratrix of the account. They knew of her address and phone the entire time.
She is now being threatened with late fees and penalties by the IRS for the estate taxes and is understandably upset that the money was withheld from her for such a lengthy period of time. The bank continues to maintain that it did nothing improper because they were never given the requested documentation. Is there a statute or regulation she can point out to make the bank more understanding of her position that she should have been notified earlier?

 

[JETX]

With all due respect, this posting changes your original post considerably.

Your first post discussed the bank's legal obligation to advise someone of an account holder's account status and that the bank KNEW who to contact. Your new post says that the original 'claimant' decided to not supply the information requested by the bank. Based on this, I don't believe the bank had any further obligation to notify an 'unofficial' claimant who 'opted to not provide the requested documentation'. This is no different than for me to walk into your bank, claim that you were dead and and that I was the 'official' representative of your estate. "Give me the money in your account". I don't think so!!! The fact that the claimant failed in furnishing the requested documents invalidates her/his retroactive claim as a "known" administratrix.

My opinion, the bank was under NO obligation to reveal any facts about an account holder to someone who did not have the proper documentation. Therefore, they have even less legal requirement to furnish this information well after the requestor chose to fail in providing the requested documentation.

This is not a legal opinion. I am not your attorney, nor am I giving you legal advice. I suggest your getting legal representation to advise you on your legal options.

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Steve Halket
Judgment Recovery of Houston
[email protected]

[This message has been edited by Halket (edited June 30, 2000).]

[This message has been edited by Halket (edited June 30, 2000).]

 

[lostmoney]

The claimant originally provided the bank with a death certificate, a marriage certificate and her appointment as administratrix by a court of competent jurisdiction in a foreign nation.The bank requested that she provide an opinion of counsel as to the validity of the court appointment. She did not do this because the cost of obtaining such would have exceeded the couple hundred dollars in the checking account - the only account held by the bank of which she was aware. Subsequent to this meeting, the bank continued to trade in the investment account (primarily reinvesting interest income) and did not, as previously stated, inform her of the existence of the account for three years.

 

[Tracey]

Which foreign nation? And why should she have to pay for an opinion letter that's designed to protect the bank? Were they going to try to keep a copy once she showed it to them? If the bank wanted the protection an opinion letter provides, they should have commissioned one.

She's going to need a US tax attorney under any circumstances. May as well hire one now. The estate will pay for it.

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This is not legal advice and you are not my client. Double check everything with your own attorney and your state's laws.