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

Tue May 12 11:57:31 PDT 2020

Rob,

My first thought was I bet it was tied up in a security agreement which would not require them to file a claim.  Of course you’d think they’d gladly share that information but there are a couple institutions that insist on making life harder then it needs to be for estates and the beneficiaries thereunder.

Diane J. Kiepe

Diane J. Kiepe
Douglas Eden
717 W. Sprague Ave.
Suite 1500
Spokane, WA  99201
djkiepe at depdslaw.com<mailto:djkiepe at depdslaw.com>
509-455-5300

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Rob Wilson-Hoss
Sent: Tuesday, May 12, 2020 11:33 AM
To: 'WSBA Probate & Trust Listserv' <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] bank account taken upon death to pay for loan from bank

Yes, I have been asking for the loan documents for about a month. Looks like we will have to subpoena duces tecum them. I am sure there is something, but I don’t know what they have to do procedurally, and if there has to already be a default. They may have to accelerate, which they apparently did not do. But this may be secured, so the secured party exception to claims filing may apply.

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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From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>> On Behalf Of JOYCE SCHWENSEN
Sent: Tuesday, May 12, 2020 11:24 AM
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Subject: Re: [WSBAPT] bank account taken upon death to pay for loan from bank

You need to take a detailed look at the loan documents. There may be a cross-default or cross-collateralization provision, in addition to the right of offset which I believe it a common law right.

Joyce

Law Office of Joyce S. Schwensen
Joyce S. Schwensen
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Seattle, WA  98125
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From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>> On Behalf Of Rob Wilson-Hoss
Sent: Tuesday, May 12, 2020 11:09 AM
To: 'WSBA Probate & Trust Listserv' <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: Re: [WSBAPT] bank account taken upon death to pay for loan from bank

Thanks. I think a condition precedent to using one account to pay another is that the second was in default. That was not the case here.

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>

This message is intended solely for the use of the addressee and may contain information that is privileged, confidential, and exempt from disclosure under applicable law.  If you are not the addressee, you are hereby notified that any use, distribution, or copying of this message is strictly prohibited.  If you received this message in error, please notify us by reply e-mail or by telephone (call us collect at the number listed above) and immediately delete this message and any and all of its attachments.  Thank you.

From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>> On Behalf Of John J. Sullivan, Esq.
Sent: Tuesday, May 12, 2020 10:27 AM
To: 'WSBA Probate & Trust Listserv' <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: Re: [WSBAPT] bank account taken upon death to pay for loan from bank

Robert:

My recollection from my numerous years in house at BofA is that this is not legally a creditor executing upon an asset of a decedent but a setoff of one obligation against another. In other words, contractually the loan and the accounts are legally a linked legal reality.

One exception would be if it’s a POD account. Another would be if it’s credit card debt being offset.

http://ttsmedia.ttstrain.com/SetoffHOLF021016.pdf

John J. Sullivan

From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com<mailto: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<mailto: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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