How do I handle my deceased mother's bank account when there's no Estate

August 8, 2013 6:33 PM

My Mom passed in March. She thought I had a POA. I can't find one. Her will is old, and predates my father's death. I don't believe I am mentioned in it, but I am next of kin. There is no Estate. She does, however, have a smallish bank account that I would like, as her only child, to take possession of. Is there any way for me to do this in NYS without creating an Estate, which would probably eat the cash in the bank account anyway? I can't stand to think of the bank just keeping her money. Thanks for any and all help. If it's important, she passed in OR, and the bank is national.
posted by Meep! Eek! to Law & Government (12 answers total)

Take the death certificate, and walk into the bank, asking for advice. That's the easiest way to get accurate information about the bank's policy and procedure.
posted by jenkinsEar at 6:39 PM on August 8, 2013 [4 favorites]

The deposit agreement will control in this case. When one applies for a bank account, one can choose if there is a joint account holder. For all you know, there may be a surviving joint holder of the account of whom you are not aware. You should talk to the bank but federal bank regulations may limit what they can share with you regarding the tenancy of the account.

Under no circumstances will the bank "just keep the money". If there was no joint tenancy of the account, bank policy and state law will be to escheat the money to the state's unclaimed property division. Those funds could then be claimed by someone who can establish a right to the funds.

I think you probably need to consult with a lawyer in Oregon since that is where she died and that is where the estate will need to be probated if a probate proceeding is required. My suspicion is that is that if there is no other holder on the account, the funds have been escheated to the state and you will need to probate the estate in order to claim the funds. I further suspect that opening the estate will cost more than the account holds. So, at worst, the state will get to "just keep the money" in limbo forever. I do not know if that is better in your view.

Source: I'm a lawyer who represents several banks, including a large regional. I have handled escheatment issues. But, not your lawyer and just giving legal information, not legal advice.
posted by Tanizaki at 6:44 PM on August 8, 2013 [2 favorites]

For informational purposes and generally speaking, a power of attorney terminates upon the principal's death. The document works by creating an agency relationship. It says, "This person is my agent, and I authorize him/her to act on my behalf." Once Mom passes, obviously Mom can no longer "act," and so there is no longer any power to be attorneyed (so to speak). It's useful to conduct someone's affairs during infirmity and to prepare, in advance, for their passing.
posted by cribcage at 6:53 PM on August 8, 2013 [1 favorite]

Response by poster: Thanks, all. I used to be a joint account holder for just this reason, but I took myself off when I declared bankruptcy to avoid ruining my mom's credit. I've already sent the bank a copy of the death certificate, so they know she's passed. I had no idea that the POA expired at death, but it makes sense. Unfortunately, her death was swift and unexpected, after a fall that required a hip replacement and then further problems while she was in rehabilitation. I wish I knew attorneys in OR. I used to work in the business here, but never there.

I'll look into the idea that the state holds the funds, but I'm thinking that I can probably mentally write the money off, which is a shame. I could use it since I'm going back to school in the fall.
posted by Meep! Eek! at 6:59 PM on August 8, 2013

You must consult an attorney. Must. Otherwise, you could improperly access the funds and commit a felony. I'm not kidding.
posted by Ironmouth at 7:40 PM on August 8, 2013

When you sent the death cert to the bank, did you request release of the money? I'm not a lawyer but here's anecdata: when my son (who had made no will) died the bank here in California needed only the death certificate to release the money, after a 30-day waiting period.
posted by anadem at 8:19 PM on August 8, 2013

When you talk to the bank, make sure to ask if there is a beneficiary on the account. If it's you, they'll tell you. If not, they might tell you that one exists but not who it is. You can probably ask them to contact him or her if they haven't already (though them receiving the death certificate should prompt that).

I used to be a retail banker. I don't remember dealing with a situation like yours (and the way it's handled is highly dependent on state law) but I can tell you that if I was taking you off of a joint account, I would have recommended (to the remaining account owner) that you be made a beneficiary.
posted by VTX at 8:35 PM on August 8, 2013

Try calling the Oregon Bar. They'll give you a referral to a lawyer in the field who will give you a half-hour consultation for $35. http://www.osbar.org/public/ris/ris.html#ris
posted by feets at 10:29 PM on August 8, 2013 [3 favorites]

Seconding what feets said.

Here's a blog post regarding Oregon probate procedures (in the event that there is not a beneficiary on the account) that might help orient you so you can get the most out of a consultation.

From looking over their website, it's not entirely clear which of the Oregon State Bar contacts is best for this but you could probably start with: [e-mail]
posted by snuffleupagus at 11:36 PM on August 8, 2013

Seconding calling a bank. Many states have a quick procedure for turning over the funds to the successor when there is no estate and the funds are limited.
posted by megatherium at 4:45 AM on August 9, 2013

If she really had no money at all, or very little, then you shouldn't need to go through probate. In Canada only estates over 50K need to go through probate. And if you are her only child and she's left no instructions to the contrary, then you will wind up with what's left.

That said, there will be a procedure to follow. This blog is based in Oregon, and might be helpful:
what to do when your loved one dies.
posted by jrochest at 5:47 PM on August 9, 2013

Response by poster: Thanks, everyone. I truly appreciate all the help, ideas and links.
posted by Meep! Eek! at 9:41 AM on August 22, 2013