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#531403 - 04/13/06 11:05 AM "Fed Reg" Restriction on Guardian's online banking
kcurtis Offline
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Joined: Apr 2006
Posts: 1
One of our customers also has a banking relationship with a very large national bank for the purpose of managing her father's funds. She has been appointed by court as a guardian over his affairs due to his incapacity. She lives quite far away from him and manages his financial needs via the bank's online banking system. She tried to move money from a family account that she is a joint signator on into the guardianship account and the bank's system would not let her do it online; she has to place a long distance phone call to the bank to move these funds. She was told that the bank cannot allow this activity due to a federal regulatory restriction. It sounds to me like a bank policy or system capability restriction has been misconstrued by the bank's staff as a a regulatory restriction. Does anyone have any idea of what federal law could restrict transferring funds between these types of accounts could be? I have not been able to think of what such law would restrict activity in this way.
Thank you!

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eBanking / Technology
#531404 - 04/13/06 01:08 PM Re: "Fed Reg" Restriction on Guardian's online banking
NLC Offline
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Joined: Jun 2005
Posts: 287
Center of US
I don't know about Federal laws but I know that state laws control this. As a conservator of a persons funds they are appointed by the probate court and in our state they must report what was done with the money. So they would not be able to mix money from different accounts.

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#531405 - 04/17/06 04:46 PM Re: "Fed Reg" Restriction on Guardian's online banking
Elwood P. Dowd Offline
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Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
Ownership and access are generally a matter of state law; there is no federal law that would prohibit a court appointed guardian from making the transfer. I agree with you, the most likely impediment is an internal restriction on transferring between accounts held in different rights and capacities.
In this world you must be oh so smart or oh so pleasant. Well, for years I was smart. I recommend pleasant.

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