[WSBAPT] How to deal with 15K payable to decedent's estate when no probate otherwise needed

[Julie Martiniello]

Hi Jon,

I have had many banks and credit unions allow use of a Small Estate
Affidavit in this instance. Bank usually allows the claimant/heir to
deposit the check into their own account (not an estate account). I do not
think an estate account can be established without a court probate order,
and do not think an EIN is needed since there is no formal estate.

I had almost  this exact situation about a month ago (insurance check from
claim right before wife died. Insurance company issued check in name of
wife/husband).

We were able to get the insurance to issue the check in the name of the
"Estate of Wife". Then the client took the check to the credit union with
the Small Estate Affidavit. The bank allowed him to deposit the check into
his own account. My client was at Sound Credit Union. But I have had other
clients use the small estate affidavit at many different banks.

On Thu, Jul 13, 2023 at 5:11 PM Jon Fritzler <FritzlerLaw at outlook.com>
wrote:

> Client received 15k check payable to the Estate of her deceased spouse as
> the result of a “critical illness” insurance policy that decedent had
> through his employer.  Apparently, there was no beneficiary designation on
> file.  No probate is otherwise needed because all other assets were owned
> jointly with client or she was named as beneficiary.
>
>
>
> On her own, client filed a small estate affidavit and got an EIN and tried
> to open an estate account at her bank so she could cash the check.  Her
> bank refused to open an estate account without Letters Testamentary.  Bank
> suggested she ask the insurance co. to reissue the check in the name of her
> deceased spouse so she could deposit to a joint account  that is still
> open!  Not surprisingly, insurance company refused to do so.
>
>
>
> Has anyone had any luck (1) getting a bank or credit union to open an
> estate account based on a small estate affidavit (if so, at which financial
> institution), or (2) getting an insurance company to reissue a check to the
> beneficiary of an estate based on a small estate affidavit.  Any other
> ideas, or is a probate necessary?
>
>
>
> Sincerely,
> Jon M. Fritzler
> Attorney at Law
> 717 E. 22nd St.
> Vancouver, WA 98663
> Tel. 360.818.4431
> Eml fritzlerlaw at outlook.com
>
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-- 


Respectfully,



Julie Martiniello, Partner

Dimension Law Group, PLLC

*Office:*  206-973-3500│*Fax:*  206-577-5090

*Email: **julie at dimensionlaw.com <synthia at dimensionlaw.com>*

*www.dimensionlaw.com <http://www.dimensionlaw.com/>*


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