[WSBAPT] bank account taken upon death to pay for loan from bank

[Heather de Vrieze]

This is a reason that I often counsel clients not to maintain deposit accounts (or at least not significant dollar value ones) at the same institution where they have outstanding loans, especially some of our more well-known credit unions.

I had this happen once when mom and daughter were remodeling the home they shared and drawn funds on a line of credit to pay the contractors. On mom’s death they transferred the deposit account to pay down the line of credit, submitted a creditor claim for the rest of the LOC and the daughter was left with lots of unpaid contractors and no ability to pay.

Heather

Heather S. de Vrieze
Attorney-at-Law
[cid:image003.jpg at 01D62848.26E4E620]
3909 California Avenue SW
Seattle, WA 98116-3705
(206)938-5500
heatherd at westseattlelaw.com<mailto:heatherd at westseattlelaw.com>
www.westseattlelaw.com<http://www.westseattlelaw.com/>
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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Rob Wilson-Hoss
Sent: Tuesday, May 12, 2020 9:56 AM
To: 'WSBA Probate & Trust Listserv' <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] bank account taken upon death to pay for loan from bank

I am thinking that this must be just one of many gaps in my understandings of the probate code.  For the first time in many years, I have a probate where the bank took all of the money in the accounts to pay for a loan that was outstanding. They base this on a contract with the decedent that lets them do this, the fine print in the original agreements. But that is a claim based on a contract that the decedent entered into prior to death. They did not file a creditor’s claim even though I sent them a 30-day ascertainable creditor’s notice.

What am I missing? Shouldn’t they have to file a creditor’s claim? And if they didn’t, then don’t they have to give the $$ back?

Thanks, I look forward to being educated.

Rob

Robert D. Wilson-Hoss
Hoss & Wilson-Hoss, LLP
236 West Birch Street
Shelton, WA 98584
360 426-2999
www.hossandwilson-hoss.com<http://www.hossandwilson-hoss.com>
rob at hctc.com<mailto:rob at hctc.com>
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