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#607687 - 08/31/06 02:39 PM POD Hold
Anonymous
Unregistered

Elderly account holder/owner has son established as an authorized signer, not an account owner. Son and three other children are named POD beneficiaries. Son is delinquent in child support and some other legal problems. Bank receives a court order signed by the judge to place a hold on one fourth of the account balance because of son's problems.

This does not seem right to me as the son has no ownership in the funds, yet senior management will not call our attorney for a legal opinion. They contacted the prosecutor that initiated the action instead and of course he told us we had to place the hold. Thoughts please.

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#607688 - 09/01/06 10:17 PM Re: POD Hold
Gigi2Three Offline
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Gigi2Three
Joined: Mar 2004
Posts: 277
I say no hold. Son has no ownership rights.

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#607689 - 09/06/06 03:51 PM Re: POD Hold
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
The bank has to comply with the court order unless it can get it quashed. The bank doesn't really have a dog in this fight (it's not their money), but it should have standing to have its obligation clarified by the court. The elderly owner has standing to argue that the son has no ownership rights and that the court should lift its order. The bank's attorney might be able to argue the same thing, but only from the perspective of getting its duty clarified.

Put the hold on the account and then decide who, if anyone, will argue to have it lifted.
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#607690 - 09/06/06 03:59 PM Re: POD Hold
Elwood P. Dowd Offline
10K Club
Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
...and make certain you notify Dad of the order and the action you have taken.
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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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