Bsnk refuses to roll over IRA

[ShatteredDrift]

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

My mother passed away almost two years ago. I am the sole named beneficiary on her accounts. I have been attempting to rollover one account (an ira with a large national bank) into a decedant ira for about a year and a half without success. The events are summarized below:

1. Bank is informed that my mother has passed
2. I am informed I am the sole named beneficiary
3. I provide death certificate, letters of administration (on the off chance they were needed) and request for rollover instructions all in person at the branch the account was opened at.
4. Time passes... Bank is contacted, required forms are requested, and submitted
5. More time passes.. Bank is contacted, I am told to resubmit forms to push it through, forms are resubmitted.
6. More time passes... Bank is contacted again, I am told there is no beneficiary on the account. After some angry words describing proof that they have already notified me that I am, they "find" that there is a beneficiary listed, and that it is me. I am told that the account rep no longer works with them and that I need an account rep in my state to set up a decedant IRA with their bank.
7. Regional manager of the bank is contacted, I am promised a call from an account rep in my area
8. more time passes.. Bank is contacted again, I am told that there is no account rep assigned to the account and that i need to make an appointment to have one contact me. I set up the appointment.
9. Still no contact

What can I do? Can I sue them to get the money? Damages? Any help would be appreciated, I have had no control over these assets and been at their mercy for approximately a year and a half.. I'm a little irked to say the least.

 

[aldaron]

They need a letter from a lawyer.

 

[justalayman]

They need a letter from a lawyer.

they shouldn't. Not only was the OP the beneficiary (unless the bank decided to change that again), the OP had all of the documents giving them the rights of administrator for the estate if they were concerned about the estate.

 

[anteater]

I'm a little irked to say the least.

Exhibit #1 in why never to do any business with a bank other than the basic checking, easily accessible savings, and loan functions.

What is it that you are trying to do? The existing account just needs to be re-titled as a beneficiary IRA, right?. Be sure that the bank personnel understand what you are doing. Approach it as if you are dealing with a bunch of boobs who know less than you.

I don't think that you have any grounds to sue anybody. Find out who regulates them - PA Department of Banking, Comptroller of the Currency, the Fed? Write a letter of complaint to the regulator, copying everybody from the branch manager up to the bank president. If you have the time, plant yourself in the branch where the IRA account is located. Bring a thermos and some particularly aromatic food. Make it known that you are not leaving until this is resolved.

Then, after the account gets re-titled, do a trustee-to-trustee transfer. Write another letter to everybody in the bank food chain that you can think of explaining that you had intended to leave the account at the bank (whether that is true or not), but, due to your abominable treatment, you are moving the account.

 

[ShatteredDrift]

Anteater: aye... this whole thing has been about titling me on the account... the process THEY described was that I set up a decedant IRA with them and roll over into that account.. for this to happen they need me to talk to an account rep... every time I contact them they reitterate this and say an account rep will call me.. I would be comfortable chalking it up to bad contact info except for the fact that they either take down or verify my contact info every time

I suppose I could try filing a complaint with whatever regulatory board oversees them.. but what recourse do I have if they just continue like this? The money in the account is legally mine and was once worth over 60k.. I am and have been completely at their mercy as to how that money is invested.. if I need to take a loan or early disbursement I am completely unable to.

 

[anteater]

I honestly can't think of any other alternatives to parking yourself in a branch, making a nuisance of yourself, and refusing to leave until this gets done. Other than retaining an attorney and hoping communication on a letterhead does something.

Without checking up on tax law, I think that you are running up against a deadline to establish a inherited/beneficiary IRA. If I remember, you have to get this done by 12/31 of the year following the death of the IRA owner.

Assuming that you get them moving, make certain that the IRA is titled correctly. Doesn't have to be exact, but it needs to be something like: The Mother ShatteredDrift IRA (deceased) for the benefit of ShatteredDrift.

Once you get that done, you will have to take annual minimum distributions based upon your life expectancy. And you can't take a loan from an IRA.

 

[cindy612]

My guess is this bank has a brokerage division with advisors assigned to various branches. She is being scheduled with a bank advisor to change the name on this account.

I can't believe the branch manager has let this go on for this long. Raise hell with her/him.

As a bank advisor, there is little or no money (commission) in this for them, especially seeing it is only $60k. They don't make money on service calls, just opportunities where they can invest someone's money in an annuity or funds. Therefore, she is put on the back burner. Here are some ideas for action:

1) Have the bank manager find out when this advisor will be at the branch or nearby branch for an appointment. Park yourself there and demand to have it handled. Do not re-invest the newly titled account with the bank. If you say in a loud voice when he/she is there "They won't return my money", you would be surprised at the attention it causes.

2) Another way to do this, although it is lying, is to make an appointment with the bank advisor with the intent of investing your inheritance of $500k (proceeds from sale of home/business/commercial property, whatever). They will keep their appointment with you. When you have them there, tell them you want the paperwork completed for your mom's IRA FIRST, then come back after it has been accomplished to invest the $500k. If they want to discuss investment options with you for the $60k, do not do it. You may end up in an annuity which can't be moved out of the bank, or funds in which you have to pay an up front load.

Once you receive the proof of the correctly titled account in the mail, find a reputable financial advisor, CFP, in your area and then move the funds out of the bank. Do not reinvest the money at the bank.

3) Call your State bank regulator, State broker regulator, the local TV station, newspapers, etc. Banks don't want negative publicity. Find out who the big wig is at the brokerage side and call him/her.

4) Instead of waiting for a call to schedule an appointment, get the number for the appointment setter and call them yourself. Don't accept the answer that someone will call you back. Ask for the next person in line of authority. Find out if the number is the actual advisor or an appointment setter. Ask for the advisors boss, the boss above both of them, etc. Make waves with the head honchos.

I am not a fan of lying, but in this case, this bank has not met minimum standards of customer service.

 

[Antigone*]

Call the office of the president or their executive client relations.