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Converting bank accounts to estate accounts.
Anonymous2 views3 answers
On 12/9/09 my father passed away and had all three of his children appointed Personal Representatives. The probate issued a Letter of Administration indicating the 3 of us are all personal representatives on the estate. Bank of America will not convert the checking and savings accounts to an estate account but will not convey to us why. They told us they needed more documentation stating that each of the personal representatives could act independently. We executed this document with the help of a lawyer and now they will not accept this either. Several attempts via the branch, phone calls, and contact through their website has
I am sure we are not the first family to approach the bank that has multiple personal representatives on an estate. What can be done to convert these account
Ask the bank to put you in contact with their in house counsel. You are probably talking to employees that don't understand what you are trying to do.
Any individual seeking legal advice for their own situation should retain their own legal counsel as this response provides information that is general in nature and not specific to any person's unique situation. Circular 230 Disclaimer - Advice given in this response cannot be used to eliminate penalties with the IRS or any other governmental agency.
One option is to simply tell Bank of America you are closing the account and taking it elsewhere. The bank won't simply "convert" the account to an estate account, in any event. Banks close the deceased's account and open a new one in the name of the estate.
Another option is to speak with a branch manager or someone in the bank's legal department. If the terms of the will state that any of the three of you can act independently (usually in the "Powers of the Personal Representative" portion of the will) this will satisfy the branch's concerns.
Disclaimer: This answer does not create an attorney-client relationship, it does not constitute legal advice, and it should not be relied upon as such. Laws vary from state to state, and an attorney cannot fully evaluate your situation without a comprehensive consultation and review of all facts and information readily available.
This issue is a brand new issue which I have seen several times in the past year. I don't know if going to another bank will help. I think that the problem lies in the fact that as a result of the great recession and new privacy laws, the banks are genuinely fearful of being sued. Let's look at this problem from the bank's point of view. If one personal representative signs a check and another personal representative objects, the bank is in the middle. The bank does not want to be in the middle of this situation. They are asking you to protect them from this potential problem.
I do not know the laws in Maryland. You need to speak with the probate attorney handling the estate so the attorney can draft a document which will allow the signature of one personal representative to bind the estate. Depending upon the laws in your state, you may or may not need a court order.
This answer does not constitute legal advice and does not and is not intended to create an attorney-client relationship. The law may vary depending on the state in which you reside. It is intended only to give some direction in which to seek assistance.
Circular 230 Disclosure: Pursuant to recently-enacted U.S. Treasury Department Regulations, I am now required to advise you that, unless otherwise expressly indicated, any federal tax advice contained in this communication, including attachments and enclosures, is not intended or written to be used, and may not be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any tax-related matters addressed herein.
