How to Get a Dead Man's Signature

July 14, 2010 8:11 PM

My parents had a house fire recently, and their insurance cut them a significant check to replace their belongings and rebuild the house. However, my deceased grandfather's name was on their policy, he had helped them buy it nearly twenty years ago, and the banks in town won't cash it without his signature. How is this even possible?

My parents owned the house outright, no mortgage. My mother had power of attorney for my grandfather before he died, but apparently that stops being worth anything once the party in question is no longer living. My uncles won't try to claim lien on anything, I'm fairly sure, judging from how agreeable everyone was when dividing up possessions, and I'm sure they could get something notarized to that effect.

I don't understand why the insurance company (Farm Bureau) won't recut the check or why the people they've banked with for years (and would cash checks with *my* name on them even when I didn't appear in person, although I had signed them) are balking at this.

(my parents have their lawyer working on this, but I'd like some outside opinions as well)

posted by rubah to Law & Government (12 answers total)

I presume the check is written to "John Doe and John Roe", rather than or? If so, that's why the bank won't take it. If it's or, they should take it.
posted by wierdo at 8:15 PM on July 14, 2010

The dollar amount of the check may be giving the bank pause.

As for why the insurance company won't recut the check: they're looking out for fraud. Or their systems won't let two checks be cut, even if one is cancelled, for the same policy.

Your best bet is to let your parents' lawyer figure this one out. Assuming, of course, that he or she is competent.
posted by dfriedman at 8:17 PM on July 14, 2010

so, the facts are:

insureds are mom, dad, grandpa (dead).
Insured event happens
check issued to "mom, dad, grandpa" as payees.

If that's it then in the state I practice in the only way to deal with this is:

Give ins. co. grandpa's death certificate showing that he died long before event and thus cannot have had belongings lost in the fire.

If that won't work - and I hope it will

the only other option is probate of grandpa's estate which obviously wasn't necessary back when he died but is now.

Sorry.
posted by BrooksCooper at 8:17 PM on July 14, 2010 [1 favorite]

If the house was originally in you grandfathers name, then the insurance policy was too. I imagine that though the title to the house was transferred at the time of probate, the policy was overlooked; it still belongs to his undivided estate. The insurance company, and the bank, can't really just over look that.

I'm not sure that a home owners policy would have any value separate from the building, but it might, and if the loss due to the fire was clearly something owned by your parents, the claim is theirs as well. At any rate, it might take a probate judge signing off on this.
posted by Some1 at 8:24 PM on July 14, 2010 [1 favorite]

Who was the executor/executrix of your grandfather's estate? That person may be able to sign the check on your grandfather's behalf.
posted by deep thought sunstar at 9:12 PM on July 14, 2010

IANAL etc.

Do you have the probate documents from the settlement of your Grandfather's estate? If so, present these to the recalcitrant bank. If not, you will need to locate them.
posted by pompomtom at 9:19 PM on July 14, 2010

IANAL but I believe Some1 is right. Insurance policies are assets, and the payout on the policy belongs to the parties who took the policy out. The payout isn't redistributed if one of those parties dies; their estate owns that share. I don't know when your grandfather died; if it was before the contract was last renewed then you might be able to argue that he and his estate were never parties to the contract ... but it's a legal question, not a "look, you're being silly" one.
posted by Joe in Australia at 12:28 AM on July 15, 2010

Forge it, then walk in like you own the place and never look back.
posted by cp7 at 5:30 AM on July 15, 2010

When my mom died a number of large checks arrived that had her name on them. The procedure then was to get a lawyer to prepare a notarized document that says that she was dead and I am due all funds in her name. With that document, and a certified copy of the death certificate, the banks rolled over right quick. This was in Florida, your jurisdiction may vary.
posted by seanmpuckett at 5:41 AM on July 15, 2010 [2 favorites]

Forge it, then walk in like you own the place and never look back.

This is bad advice.
posted by ColdChef at 7:08 AM on July 15, 2010 [3 favorites]

yea, forging it at this point would be a horrible idea. You've already been in to the bank explaining that he's passed away.
posted by cmyr at 7:23 AM on July 15, 2010

I think Some1 and BrooksCooper have it. I know that when I went to deposit the check for the downpayment on my condo no bank would touch it because it was made out to me and my dad. I explained he was alive, but 800 miles away and I asked if I could fedex it, get him to sign it, have him fedex it back - they said no, we had to walk in together and sign it. So frustrating!

In the end the broker had to recut the check to just one of us. The delay wasn't too long, so hopefully the above advice will get your folks the money soon!
posted by ldthomps at 8:01 AM on July 15, 2010