Bank closing & Money Mkt Mess

[smhteddybears63]

What is the name of your state? PA

A friend of my mother's set-up a Money Mkt fund in my son's name with my mother as trustee. The gentleman died over a year ago. The stipulation was that the fund would become available to my son once he reached the age of 21, which he has. I found out about the fund through other family members. My son and I have asked my mother about the money, however, she stated the bank closed and she received nothing. I did verify that the bank closed, however, she's not been honest concerning money matters in the past. My questions are: Are Money Mkts protected in case of a bank closing? Are depositors notified prior to a bank closing? If the money is protected, how does my son proceed in obtaining the funds?

He's in the military and will be sent back to Iraq shortly. This is his 2nd tour. I'm attempting to assist him with his estate matters prior to leaving. Thank you for your assistance.

 

[Veronica1228]

What is the name of your state? PA

A friend of my mother's set-up a Money Mkt fund in my son's name with my mother as trustee. The gentleman died over a year ago. The stipulation was that the fund would become available to my son once he reached the age of 21, which he has. I found out about the fund through other family members. My son and I have asked my mother about the money, however, she's now stating that the bank closed and she received nothing. Unfortunately, she's not been honest with her dealings with the family in the past. My questions are: Are Money Mkts protected in case of a bank closing? Are depositors notified prior to a bank closing? If the money is protected, how does my son proceed in obtaining the funds?

He's in the military and will be sent back to Iraq shortly. This is his 2nd tour. I'm attempting to assist him with his estate matters prior to leaving. Thank you for your assistance.

This was a Money Market savings account at a bank, and not some other type of investment? If it was just a savings account then the bank should have been covered by FDIC insurance. Have you verified that this bank did indeed close? Did it close or was it bought up by a larger bank? I haven't heard of a bank actually closing in years. Please clarify.

 

[smhteddybears63]

Thank you for your reply. The fund was a trust fund (I apologize for the error). From what I was told, the bank closed due to bankruptcy.

 

[Veronica1228]

Thank you for your reply. The fund was a trust fund (I apologize for the error). From what I was told, the bank closed due to bankruptcy.

Most funds are not covered by the FDIC. The higher the risk, the higher the possible return. It's possible your mother is telling the truth. If this bank was closed there had to be newspaper articles about it that probably have information about what to do if you are an account holder. Try google and see if you can find something out that way.

 

[BlondiePB]

There's also the possibility that the trustee stole the money. Beneficiaries of trusts are entitiled to an annual accounting from a trustee.