Credit union refuses to disburse funds

[freeadviceusern]

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

My husband is an heir of an estate that was closed in 2011, and we recently found out that there are funds in a credit union account that were not disclosed during the administration process. (We found out about the money from an account statement that was mailed to the executor.) We did receive notification of a different account at the same credit union, so the credit union was aware of the process. They are refusing to speak to anyone (heirs, estate lawyer, executor) about the account and refuse to tell us what documents they require to release the funds. What can we do to close the account? Will there be any complications since the estate has been closed and the executor has been released from his duties?

 

[tranquility]

Yes, there are complications as probate would need to be reopened. How much are you talking about?

 

[freeadviceusern]

Yes, there are complications as probate would need to be reopened. How much are you talking about?

A little over $3,000.

 

[curb1]

I find this hard to believe. Someone is not doing their job.

You said, "They (the credit union) are refusing to speak to anyone (heirs, estate lawyer, executor) about the account and refuse to tell us what documents they require to release the funds".

 

[tranquility]

A little over $3,000.

For $3,000 it might be worth the time to see an attorney to reopen probate. You might talk to the prior executor to do this as it would be cheaper and he has a motivation, depending on the facts, because of a possible fiduciary breach.

 

[freeadviceusern]

I'm aware that someone is not doing their job. The estate lawyer is borderline incompetent and the credit union seems to think I'm lying about this woman even being deceased. What I need to know is what we can do about all of this.

 

[tranquility]

I'm aware that someone is not doing their job. The estate lawyer is borderline incompetent and the credit union seems to think I'm lying about this woman even being deceased. What I need to know is what we can do about all of this.

I told you, you must get probate reopened. You can either get the executor to reopen probate, or you can reopen probate. You will need an attorney if you want to do it yourself as such things are not just check the box on the form. I did not say someone was not doing his job, I mentioned that may be the case depending on the facts. Because of this and because reopening probate would be cheaper if the former executor reopened it for after discovered assets, it would be easier and cheaper to convince him to do so. If the facts indicate he should have found the asset in his search and he breached a duty of due diligence, you might be able to get damages from him. But, the credit union does not have to, nor should they, discuss this with anyone until they see the letters testamentary from the court giving the executor rights to deal with the matter.

The lawyer was not your lawyer so don't waste your time with him as he does not have to talk with you.

 

[freeadviceusern]

I told you, you must get probate reopened. You can either get the executor to reopen probate, or you can reopen probate. You will need an attorney if you want to do it yourself as such things are not just check the box on the form. I did not say someone was not doing his job, I mentioned that may be the case depending on the facts. Because of this and because reopening probate would be cheaper if the former executor reopened it for after discovered assets, it would be easier and cheaper to convince him to do so. If the facts indicate he should have found the asset in his search and he breached a duty of due diligence, you might be able to get damages from him. But, the credit union does not have to, nor should they, discuss this with anyone until they see the letters testamentary from the court giving the executor rights to deal with the matter.

The lawyer was not your lawyer so don't waste your time with him as he does not have to talk with you.

Sorry tranquility, I was not responding to you, but the post before yours.

It is my understanding that since the credit union was aware that the first account was part of the estate, they should have also been aware that the second one was as well. If the executor asked the credit union for information about her accounts and they failed to disclose one of them, it seems that is their fault. I don't know all the responsibilities of an executor, but it seems there is only so much the executor can do to get the correct information.

I was under the impression that it would be the estate lawyer's responsibility to take care of this (and she is currently trying to) since it was her responsibility to handle the estate. Is this not accurate? If not, I will take your advice and hire my own lawyer - I am just reluctant to do so because the cost does not seem worth it, based on the amount we have already paid lawyers during this whole mess. It seems like the fees would be well above the amount in the account.

 

[anteater]

I was under the impression that it would be the estate lawyer's responsibility to take care of this (and she is currently trying to) since it was her responsibility to handle the estate. Is this not accurate?

Technically, it is the executor's responsibility. But, this sounds like one of those cases where the executor was appointed, retained an attorney, and allowed the attorney to do all the work. Which may be the reason that the legal fees seem so high.

I'd let the attorney take a crack at it. Tranq is right. By the book, probate should be re-opened to handle this. But, sometimes a persuasive and experienced attorney can cajole a financial institution into ignoring a few pages in the book.

 

[tranquility]

Sorry tranquility, I was not responding to you, but the post before yours.

It is my understanding that since the credit union was aware that the first account was part of the estate, they should have also been aware that the second one was as well. If the executor asked the credit union for information about her accounts and they failed to disclose one of them, it seems that is their fault. I don't know all the responsibilities of an executor, but it seems there is only so much the executor can do to get the correct information.

I was under the impression that it would be the estate lawyer's responsibility to take care of this (and she is currently trying to) since it was her responsibility to handle the estate. Is this not accurate? If not, I will take your advice and hire my own lawyer - I am just reluctant to do so because the cost does not seem worth it, based on the amount we have already paid lawyers during this whole mess. It seems like the fees would be well above the amount in the account.

The credit union has no duty to "disclose" anything but respond to a specific question. The deceased should have records the executor follows up on. As to the lawyer issue, I don't think anteater's suggestion will work, but it doesn't hurt to try.

 

[justalayman]

They are refusing to speak to anyone (heirs, estate lawyer, executor) about the account and refuse to tell us what documents they require to release the funds

.

something about that sounds so wrong. I suspect you may be misunderstanding their response. They may be refusing to provide what is needed to release the funds because, as it stands, since there is no probate open, nobody has the authority to act on behalf of the estate. They might as well be talking to strangers walking down the street as far as they are concerned. They are not going to spend a lot of time with anybody but the one entity that has the authority to act on behalf of the estate and if the estate is closed, at the moment, that is nobody.

the executor has been released from his duties?