The bank wouldn’t budge
The good news is that Elliott finally received her check – including more than $2,000 in accrued interest – after 7News legal expert Howard Finkelstein hopped on the case. But what took the bank so long?
Banks have the right to withhold information about an account’s status, which is typically treated as private information and not privy to anyone but the account holder.
Finkelstein explained the situation bluntly.
“No, they don’t have to tell you, but they do have to tell a judge,” he told 7News. “In this case, a judge signed an order to transfer the funds to the trust. Now the bank has to explain why they won’t do it. If the judge doesn’t like that explanation, they can fine the bank and force them to release that cash.”
The bank could have been withholding the money for several reasons.
Regardless, without an explanation, the family was left in the dark. And frustration and legal expenses can mount for anyone in the same scenario.
Invest in real estate without the headache of being a landlord
Imagine owning a portfolio of thousands of well-managed single family rentals or a collection of cutting-edge industrial warehouses. You can now gain access to a $1B portfolio of income-producing real estate assets designed to deliver long-term growth from the comforts of your couch.
The best part? You don’t have to be a millionaire and can start investing in minutes.
Learn MoreWhat can you do in this situation?
If you or a loved one face a similar roadblock with a deceased relative’s bank account, there are steps you can take to break the deadlock.
The first step is to escalate the issue with the bank. While Elliott contacted multiple departments before giving up and calling the television station, persistence is key.
Requesting a meeting with a higher-level executive in the estate resolution department or filing a formal complaint can sometimes resolve bureaucratic issues.
Requesting legal justification from the bank is another option. While banks aren’t required to disclose specifics, they must follow the law. A probate attorney can send a formal demand letter requesting clarification on the legal grounds for withholding the funds.
If the bank remains uncooperative, filing a complaint with regulators can add pressure. The Consumer Financial Protection Bureau (CFPB) or a state banking regulator may be able to intervene and push for a resolution.
As a last resort, taking the matter to court may be necessary. A court order can compel a bank to release funds, though this option may be costly and time-consuming.
Preventing the problem before it starts
To avoid a similar nightmare, estate planning should cover every account. Even a minor oversight – like a checking account – can create major legal trouble.
Naming beneficiaries on all accounts is a crucial step. Experian says many banks allow accounts to be designated as “payable on death” (POD), which avoids probate entirely.
Regularly reviewing estate plans can prevent these issues. Even financial experts like the late Charles Elliott – a key leader for the cereal giant Kellogg’s – can overlook small details that may not be a top priority, which is why periodic checkups are crucial.
Creating an airtight estate plan can help heirs be sure of where assets are held and what steps they need to take when the time comes.
The richest 1% use an advisor. Do you?
Wealthy people know that having money is not the same as being good with money. Advisor.com can help you shape your financial future and connect with expert guidance . A trusted advisor helps you make smart choices about investments, retirement savings, and tax planning. Try Advisor.com now.
