He left a bank account, is it worth it?

[Dhream]

What is the name of your state?What is the name of your state? NJ
My father had no real permanent address, but on his death cert was NJ just to make things easier with having him buried in the NJ State Veterans Cementary because that is where the services were held and it is where he grew up.

My father did not leave a will and his only asset was a bank acct in NM where he received his SS and VA Benefits. His wifes name (my mother) was not an this account and I am trying to get access to this $3,000 to pay for funeral expenses that werent covered by the VA. Glancing at his credit report, he also had many other bills.

Is it worth it to try and obtain this money? I dont want my mothers credit to be affected or do not want to go through the trouble of getting the money just to see it gobbled up by the creditors.

 

[Dandy Don]

Yes it's worth a try. You need to contact the bank and ask if the account had a named beneficiary.

If there is no beneficiary named on the account, then it goes into his estate. You or your attorney will need to file papers at the county courthouse probate court to become administrator of the estate, and will soon afterwards receive a document called letters testamentary, authorizing administrator to claim any and all assets. While at the courthouse you will need to check and see if they have a special procedure for expediting smaller estates.

Administrator presents a certified copy of the letters testamentary to the bank and the bank then releases the money to you in a check payable to the estate. Bank will usually not release money to anyone besides the executor, but if you are lucky they might release it to your mother if she begs and pleads and explains the special circumstances.

DANDY DON IN OKLAHOMA ([email protected])

 

[Dhream]

Thanks for your response!

I contacted the NJ courthouse and it seems like a simple process as you have stated. I dont quite understand the "payable to the estate" part. How do you cash a check like that? My mother lives in IL, I live in FL, the papers will be filed in NJ and the bank is in the middle of the desert of NM.

I have found a simple way to get the certified copy of the letters testamentary by NJ sending the paperwork to the courthouse in IL for my mom to sign there and then they send them back to NJ. Then NJ sends the certified docs to for her to present to the bank. I was hoping to do this part by mail as well but am questioning how the check can be cashed. He may owe that particular bank money also that is why I am wondering if they will turn around and ask her for the money back.

 

[Dandy Don]

What does he owe the bank money for? You should be forewarned that the bank might deduct the monies they are owed from the account before they release what is left to the administrator.

The check will have the administrator's name on it, followed by the phrase "administrator of the estate of John Doe", so there should be no problems with her cashing it.

 

[Dhream]

I am thinking that he may have taken out a loan out with them. From looking at his bank statement, they automatically take $300 out every month for payment. I talked to the bank yesterday and they said that there is no beneficiary so I am safe with that.

On his credit report he has many medical bills (close to 4k), some cable, some phone all from various states. He did not manage his money very well as you can see. Do you think it is a good idea to ask the bank if he owes them any money? I am not sure if they will even tell me. I have heard that the funeral home usually has the first crack at the money anyway. Is this true?