[WSBAPT] Payment of Debts out of Primary Checking without Following Creditor Procedures

[Rebecca King]

Hi Brent,

This is a common practice with BECU.  My understanding is that BECU has language in their credit card and loan contracts which allow them to remove the funds directly from the decedent’s account.  It has come up on the listserve several times, but I don’t think anyone has actually challenged BECU on this practice.

Warmest regards,
Rebecca King
Attorney

Northwest Elder Law Group
2150 N. 107th Street, Suite 501
Seattle, WA 98133
Main: (206) 937-6102
Direct Line and Fax: (206) 866-6544

Providing Services in Elder Law

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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Brent Williams-Ruth
Sent: Tuesday, March 16, 2021 9:37 AM
To: WSBA Probate & Trust Listserv <WSBAPT at lists.wsbarppt.com>
Subject: [WSBAPT] Payment of Debts out of Primary Checking without Following Creditor Procedures

Good Morning Colleagues!

I write to share an experience that a PR of mine just had with BECU. *NOTE* this story ends fine, in that there were other assets, but just as a cautionary tale to anyone else.

Decedent had a primary bank account with BECU. They also had a credit card, a personal line of credit, and a car loan. When the PR went to obtain the funds from the primary account to put into the Estate account - BECU paid off all of their own debts FIRST and gave the remainder to my PR in the form of a cashier's check.

She pushed back and said - wait, don't you have to go through the notice to creditor's period and BECU allegedly told her that this was permitted based upon the terms and conditions.

As I said above, the estate is solvent and they would have been paid had they gone through the normal process - but this is the first time in my 6 years of independent practice that I have ever had this happen.

Just wanted to share with others.
Brent

Brent Williams-Ruth (preferred pronoun: he/him)
Attorney-At-Law

Law Offices of Brent Williams-Ruth, a division of BWR Consulting, PLLC

Physical Address: 500 S 336th Street, Suite 214; Federal Way, WA 98003

**EFFECTIVE IMMEDIATELY** All mail sent through the USPS should be sent to the following address: PO BOX 3319; Federal Way, WA 98063

Office/Scheduling Phone: (253) 285-7751

Direct: (253) 285-7453

e-mail<mailto:Brent at Williams-RuthLaw.com> / website<http://www.williams-ruthlaw.com/> / facebook<http://www.facebook.com/bwrlaw> /
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