We have a customer with federal and state tax refund checks made payable to the 'estate' of his late daughter. Unfortunetly there is no estate, there was not enough funds. The checks are for small dollars, together they total much less than $10k. Could we use the same methodology of 'payments of small accounts upon depositors death' and allow the father to deposit into his own account, or do we require him to open an estate account? Thank you.

I don't know what the MA statute you are referencing says, but am comfortable providing a generic response.

Checks payable to a decedent's estate, regardless of who issued them, should be deposited to an estate account opened by a properly appointed personal representative. Banks taking an alternative approach without express statutory authority to do so take uncompensated risks in the amount of the payment(s) involved.

I was referring to MGL Chapter 167D Section 33 which allows us to pay small deposit accounts to the next of kin. Where the deceased has no other assets an estate was not going to be set up.
Thank you for your feedback.

This is a difficult situation. There are too many risks here for your bank to allow Dad to negotiate the checks to you, unless he is first appointed an administrator of the estate. Without that appointment, he has no standing to indorse the checks, even to himself.

You can't be certain that Dad is the only person with an interest in the funds. If there are claims against the daughter's estate, you could be caught in the middle of a court case, since the tax refunds are estate assets.

I recommend you suggest that Dad take the checks to the Probate Court and ask for guidance there.

The small accounts statute won't help you because there's no account involved yet.

Thank you, as always!