QUESTION
My fathers bank allowed the POD (my brother) to access an account in my deceased fathers and my name. Is the bank liable?
Asked on Nov 30th, 2013 on Consumer Fraud - Nevada
More details to this question:
My father opened a joint account for he and I and also added my younger brother as a POD on the account. My father died in 2009 and I only now found out about the account. My brother has used the account for purchases and to pay his bills. He has even obtained credit cards in both his and my deceased fathers name and then ordered checks on the same account and replaced my name with his alone. Aside from the fraud aspect, is the bank liable for allowing him to access and use the account? Clearly he did not supply the bank with any information on my fathers death as the same bank is issuing credit cards and mailing the statements in my dads name to my brothers address. I was told by the bank that I'm a signer on the account, so how could my brother who is POD use the account?
1 ANSWER
R. Christopher Reade
As you know, Payable on Death (POD) designations on bank accounts specify who is to receive monies in a bank account upon the death of the account holder. Your situation is interesting in that it is a joint account over which your father would presumably only have been the source of some of the monies in the account. Your brother certainly should not have been access to the account based solely on a POD designation without proof to the bank of your father's passing. The bank is most likely not liable for recognizing the POD; however there appear to be significant anomalies in how the account was handled which should be reviewed by an attorney.
Answered on Dec 02nd, 2013 at 1:09 PM