Bank account balance

[Tryton]

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

Hopefully this is in the right forum. One of my wife's former students who is now in college had her mother pass away on December 17th. Her mother died essentially indigent but she did have a couple hundred dollars in a bank account. We are currently helping this girl out. She stays with us when she's not at school and we have been helping navigate through this mess. She was told in December by the bank that once 45 days pass, she can withdraw what money is in that bank account. It was 45 days as of Jan 31st and now the bank is saying they won't give her the money without hearing from a probate attorney. There is no estate. Her mother was on public assistance and didn't even have to file taxes. There is no money for an attorney even if she could get to the money that's in the account. The bank already has a copy of the death certificate. I don't understand how they can tell her one thing and then turn around and deny her now. As far as I'm concerned, not only do they now owe her the money, they owe her every penny of interest THEY have earned on it since Jan 31st. They are holding it hostage. What can we do? Thanks

 

[CourtClerk]

If there was no pay on death beneficiary... then she'll have to open a probate to get the money.

She's not ENTITLED to the money just because, she'll have to go through the process.

 

[nextwife]

The titling of the estate asset is important to know. And, the estate's CREDITORS have rights to estate assets before the estate can distribute them to any heirs. The bank is acting in accordance with probate law in holding the funds without a properly appointed estate representative.

 

[anteater]

Indiana has an affidavit procedure for estates valued at less than $50,000.

http://www.in.gov/legislative/ic/code/title29/ar1/ch8.html

And while the bank is spreading the BS that one normally expects from a bank about "hearing from a probate attorney," if the former student has trouble figuring out how to utilize the affidavit, she will probably need to an attorney for assistance.

 

[Zigner]

Indiana has an affidavit procedure for estates valued at less than $50,000.

Indiana Code 29-1-8

And while the bank is spreading the BS that one normally expects from a bank about "hearing from a probate attorney," if the former student has trouble figuring out how to utilize the affidavit, she will probably need to an attorney for assistance.

I suspect the bank told the girl to CONTACT a probate attorney if she didn't know what she needed to do to get the money. The bank cannot (should not) give legal advice to the girl.

 

[anteater]

I suspect the bank told the girl to CONTACT a probate attorney if she didn't know what she needed to do to get the money.

You may be right, Zig, and what was said became mangled after a couple iterations.

But one should never underestimate the propensity of financial institutions to act like a horse's rear end.

(I'm not feeling too charitable to banks right now, after going through a "Shootout at the OK Corral" with one.)

 

[Tryton]

Anteater, thank you. That's what she was told. It would be an affadavit. We were given similar advice on her mom's vehicle and we have an affadavit form to be able to sell it.

The bank did not mention anything about an attorney, they said after 45 days she could get the money which is where the affadavit comes in. We checked around and it's going to cost $1100 to open probate with a lawyer to get less than that out of the bank. Ridiculous. Coincidentally, and the reason I have not replied to this until now, my wife's grandparents both passed away within 27 hours of each other and the funerals were both this past week. The same funeral director dealt with this situation and since we were up there, we brought this situation up with him. He said this particular bank is very, very hard to work with. I've known this man for many years and he steered us toward an attorney who may be able to help. Based on this situation, the new situation with my wife's grandparents (the details of which have shaken my faith in humanity) and the situation we dealt with last year regarding my mom's house, my wife and I are scheduling an appointment with an attorney to set up a very specific will so anyone who's left after us does not have to go through what we've gone through. I appreciate everyone's replies.

 

[anteater]

....my wife and I are scheduling an appointment with an attorney to set up a very specific will so anyone who's left after us does not have to go through what we've gone through. I appreciate everyone's replies.

Not certain about the other situations you refer to, but, remember, a will is not some "magic bullet." A will expresses your wishes regarding who should receive your assets. But, it still requires a legal process - probate or some small estate alternative - to put those wishes into effect.

For example, a will would not have altered your wife's former student's situation. She still would have needed to probate the will or utilize the small estate procedure.

 

[Tryton]

Yeah, I know it has to go through probate and it has a lot more to do with other things in the past than this girl's situation. The thing with mom's house is it went very smoothly thanks to both she and my step dad having clear wills. It also helped that my step siblings were amazing to work with and did not fight with each other or my brother and me over anything. Unfortunately, that seems to be a rare situation. In fact, one thing we found out when we were up there was that this girl's mother's ashes were supposed to be interred with a baby that she lost years ago and it hasn't been done yet. Her aunt, her mom's own sister, was going to pay to have it done. She hasn't done it. One of the first things she asked at the funeral was how much was in the bank account. We figure since she didn't get anything out of it, she's not going to pay to have her sister's remains put where they belong. My wife and I are going to pay for it now. It's really reprehensible the way people treat their own family. Thank you again for the link to the Indiana code for her situation. That's definitely going to help.

 

[latigo]

Try getting acquainted with your good senses. And please tone down the paranoid whining. It’s gone beyond the point of tiresome.

I don't like bankers any better than you do. Nevertheless they are NOT permitted to turn over a customer’s deposits to the first Tom, Dick, Mary or Jane that shows up with a death certificate in hand claiming to be a sole surviving heir.

And just because some bank underling in “a cheap suit and a bad hair cut” * may have mistakenly said that it could, DOES NOT MAKE IT SO!

____________________


[*]With humble apologies to “The Dilbert Principle” (Scott Adams).