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

Tue Mar 16 14:45:29 PDT 2021

I challenged BECU in person after opening an estate when they paid their own loan after death.  The estate did not have enough funds for all creditors and the car was repossessed for the loan.
BECU returned the monies when I showed up in person to dispute the right to pay themselves before releasing monies to the estate.

Dalynne Singleton
Gourley Law Group
Snohomish Escrow
The Exchange Connection
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Snohomish, WA 98291
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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Heather de Vrieze
Sent: Tuesday, March 16, 2021 10:02 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Payment of Debts out of Primary Checking without Following Creditor Procedures

That has been my experience with BECU for years. I warn estate planning clients when I can that this can happen. It is part of their customer account agreements that they can pay off debts out of assets on hand in the event of a default, and death is such a default.

Heather

Heather S. de Vrieze
Attorney-at-Law
[cid:image007.jpg at 01D71A73.01EA1C00]
3909 California Avenue SW
Seattle, WA 98116-3705
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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 Brent Williams-Ruth
Sent: Tuesday, March 16, 2021 9:37 AM
To: WSBA Probate & Trust Listserv <WSBAPT at lists.wsbarppt.com<mailto: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

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