Check issued to mother's estate - there is no estate account

[Mar1]

Jurisdiction

Florida

Both parents are deceased - in January and February 2022 at 89 and 90 years of age. All of their assets were either shared / intermingled or else not subject to probate - so there was no separate probate process initiated for mother but now we have received a check for $7969.64 issued to her estate (it is the final distribution from my late aunt's trust).

Wells Fargo is understandably unable to deposit this check because we have no estate account for our mother - but there is no "estate". This check is the only asset remaining for either parent - and my brother and I are the only heirs.

Our mother's will names my brother and me as co-executors and states for assets to be divided equally between us, share and share alike - and we are completely united and working together as a team to care for our late parents' affairs.

There are definitely no creditors so no payouts will need to be made from this check - I am waiting for a response from the trust administrator as to whether they can reissue the check to me instead of to our mother's estate and then I can divide it equally with my brother.

I am well-known to the trust administrator - I've been working with him since 2019 to care for my parents and to handle the distributions from the trust to them. All of the previous distribution were made to a single account in the name of both parents - this is the first time a distribution has been split.

The administrator knows that I was DPOA for both parents since 2017 and also that I was personal representative for our father earlier this year - also I'm personal representative listed on our mother's EIN letter - so it is possible that they might be able to reissue the check to me to distribute but if for some reason they cannot or will not, then we will need to open probate just to handle this one single check.

Wells Fargo said that with summary administration probate process, the Court could compel Wells Fargo to process and distribute / divide the funds from the existing check between my brother and me equally - without even needing an estate account to be set up.

My brother and I are also heirs/beneficiaries of our aunt's trust behind our parents, as descendants of them - I wondered if the check could be returned to the trust and separate checks issued to each of us - which is also what a court order would do - divide it equally.

Easiest if the trust administrator could just reissue that check so I can deposit it and distribute it equally - is there any legal stance that supports my request of that or is it just a shot in the dark and maybe they will, maybe they won't?

If we do need summary administration, it seems like a simple straightforward case - but also time-consuming and it will cost, even if flat-rate - everything has a cost.

 

[adjusterjack]

I am waiting for a response from the trust administrator as to whether they can reissue the check to me instead of to our mother's estate[

Easiest if the trust administrator could just reissue that check so I can deposit it and distribute it equally - is there any legal stance that supports my request

No.

Easy is not law.

The trust administrator will either do what you ask or not do what you ask. You have no legal basis for compelling the trust administrator.

This was your late aunt's trust apparently with your mother as the beneficiary. The disbursement would have gone to your mother while she was alive and is legally required to go to her estate now that she's passed.

If we do need summary administration, it seems like a simple straightforward case - but also time-consuming and it will cost, even if flat-rate - everything has a cost.

You may not have any say in the matter.

Minimal cost and effort. You don't need an attorney.

The Florida probate court website likely has forms and instructions for one of you to be appointed representative of the estate for just court fees. Then you get an estate TIN (taxpayer ID number) from the IRS website (easy). Then you open an estate checking account at a bank (The estate of ______). Then you deposit the check. Then you write two checks. One to you, one to your brother. Then you close the checking account and file whatever form you need for closing the estate with the court.

 

[Zigner]

Another alternative would be to just let the money go.

 

[adjusterjack]

Another alternative would be to just let the money go.

Would you let almost $8000 go?

I wouldn't.

They would have to pry it from my cold dead fingers.

 

[Zigner]

Would you let almost $8000 go?

I wouldn't.

They would have to pry it from my cold dead fingers.

$4k each - and I might let it go...for now. Eventually, it will escheat to the state, whereupon the OP and the brother can claim it from there.

 

[zddoodah]

Wells Fargo is understandably unable to deposit this check

It's not clear what Wells Fargo's role is.

but there is no "estate".

Yes, there is. Just because you didn't probate doesn't mean there's no estate.

I am waiting for a response from the trust administrator as to whether they can reissue the check to me instead of to our mother's estate and then I can divide it equally with my brother.

Trust administrator? What is the source of this check? Why wouldn't you request a joint check payable to both you and your brother?

is there any legal stance that supports my request of that or is it just a shot in the dark and maybe they will, maybe they won't?

No one with any sense would issue a single party check. If you're asking whether you can compel this "trust administrator" to issue a check payable to anyone other than the estate, the answer is no, not without a court order.

and it will cost, even if flat-rate - everything has a cost.

I don't know what all is involved, but is it worth it to you to spend $2,500 to get $8,000?

By the way, have you googled to see whether there is any sort of small estate process that would allow you to bypass the court?

 

[Mar1]

Thank you for your responses !

When I asked about there being a legal stance that might support Regions reissuing the check, it was from the standpoint of whether or not it was legal or possible for Regions to do this - I understand there is no legal claim whatsoever from my brother's and my end to compel Regions to reissue the check.

We are grateful for the final distribution, not feeling entitled - yet we would like to secure the full amount of the funds if possible.

If it was $400 each, maybe --> probably --> definitely let it go - but because it's close to $4K each (even though less than that after deducting attorney expenses) - that's enough for me (and for my brother too) to explore every option to access it.

I am still waiting to hear back from the trust administrator (phone call on Wednesday morning and email on Thursday evening, although they were most likely off on Friday because of Veterans Day) - I'm not sure how soon is too soon to contact him again but in the meantime I'm curious about your thoughts on this background information below -

These distributions from our late aunt's trust were always made to both parents jointly in the past - once by check issued to both names - but more often via wire transfer into a joint account with all three of our names on it. The trust reads that the distribution is to "X and X M---------", not separately like "X M---------- and X M-----------".

Regions said it needed to divide this final distribution and issue half to each parent "due to tax reasons" - even though their taxes have always (after they were married) been filed jointly and it was always one single deposit/check for both in the past.

With there being such an issue handling our mother's check - and since the distribution was meant to go to both parents, not just to her - COULD Regions (again, legally) issue her half of this distribution to our father ? - based on the wording in the trust ?


With respect to waiting it out for (unclaimed?) funds to roll over to the state -

Regions distributed the check from their site in Alabama but our parents lived in Florida - if it escheated to the state, which state would it be and how long does that take to happen - I can do a search about how to claim those funds, if we just waited it out.

The face of the check says "not valid after six months" . . . .


With respect to a court proceeding -

I've read on many websites and also from commenter above that my brother and I could file as co-petitioners (by ourselves, without representation by attorney) for summary administration, understanding that we would need the proper forms and language - but Duval County probate court clerk advised me that Florida law requires an attorney for probate if there is more than one living relative / heir - so I am unclear if this is an option for us or not (to file it ourselves).

I understand that a personal representative must have an attorney unless the PR is the sole interested party / heir or beneficiary - but we wouldn't even need a personal representative (to set up estate account) if the court could just compel Wells Fargo to process and divide this check, no?

It seems so clear that our mother left whatever assets to be divided equally and that my brother and I were to work together to do this (we would do this with or without a court order, we are lucky) - I sure wish there was a way to do this without court proceedings.

I have EIN number for the estate already.

 

[Mar1]

It's not clear what Wells Fargo's role is.

Wells Fargo is where our father's estate account is set up and where there were two more accounts with both parents' names and mine (co-owned by the three of us). One of the counter tellers and also one of the desk agents advised me that if we could get the check reissued to just firstname middleinitial lastname (without "estate" on it), it could be deposited to one of those co-owned accounts with our mother's name on it and then distributed from there.

I am unsure if this is correct information (re the name on the check) - but it made sense to do everything at Wells Fargo because of the existing accounts and history with the wire transfers from the trust In the past.

I don't know what all is involved, but is it worth it to you to spend $2,500 to get $8,000?

It would be a process - but even after expenses, the net would still be ~ $5500 divided by two - that would otherwise be inaccessible / wasted. The trust administrator said he "hated for us to go to any trouble" but right now it seems that we might have to, if we would like access to any of the proceeds.

By the way, have you googled to see whether there is any sort of small estate process that would allow you to bypass the court?

I did - if I understood correctly, the only process in Florida would be Disposition Without Administration and that doesn't work in our case because funeral expenses and medical bills were already paid in full back in February.