This post marks the beginning of a short series of questions (and answers!) posed by some of our client’s regarding estate planning and elder law.
We hope that you will find it helpful.
Dear Curtin Law Office,
I am confused. My mom died and she had a Will. I thought we were all set, but when I went to the bank, with her financial power of attorney, the Bank froze my mother’s bank account and told me I needed to get papers from the court. Can you help?
Sincerely,
Confused Client
Dear Confused Client,
Unfortunately, a financial power of attorney terminates at a person’s death, and a Will does not avoid the Court. A Will only tells the Court how the person wants his or her assets distributed at death.
The only ways to avoid the Court when a person dies are
- Beneficiary designations
- Joint ownership
- Trust
Apparently, your mother’s bank account was only owned by her, and did not have a beneficiary designation or was not in a trust. For that reason, to obtain access to the bank account, you will need to go through the probate process.
Probate is a court supervised process, where you file paperwork with the Court to get appointed as an Executor. Then, you may need to pay for a bond, and file additional paperwork, such as an Inventory and/or an Accounting. Once you are appointed there is a six-month creditor claim period, in which creditors may file a claim against the Estate. Once the six-month creditor claim period ends, all creditors are paid and all beneficiaries agree, the Executor can file paperwork asking the Court to close the Estate.
The probate process typically takes about a year and until the Court allows the closure of the Estate, distributions to beneficiaries cannot be made without Court permission.
If you need assistance with the Probate process, our office would be happy to help you.