Estate account activity

We have an Estate account opened in April where the majority of the activity has been ATM w/d's at a local casino. Also, the Executrix opened a personal account in August with a large deposit which was a transfer from the Estate account.

Has anyone seen this type of activity? Any info. or feedback is greatly appreciated.

Why would an Estate account need an ATM card to begin with?

I would file a SAR and inform the court that appointed the executrix.

Jumping back to kw004h's comment, I'd also review your bank's new accounts/card issuing practices. Issuing a debit or ATM card on an estate account just doesn't seem to be a normal practice.

I agree. Why would an executor need cash from an estate? As an executor you do have to account for what you have disbursed, at least here in PA. Are there other heirs? They might be interested in this.

Thanks to everyone for your responses. It appears that the Executrix is the widow of the deceased. If we filed a SAR, what would we check-off as the reason for filing?

Well, then, it is probably her money. Why did she even bother to open the estate account? I don't think a SAR would be necessary if she is the widow and spending her own money. I still would have to question the policy of giving an executor an ATM/debit card.

Even if she is the sole heir, the estate has to be probated before she is entitled to it and the monies would have to be accounted for in an estate account.

George Plum is correct. Additionally, even as the sole heir, the money is not necessarily hers. Legitimate claims against the estate must be paid, as well as the expenses of the probate, before heirs receive anything.

Just because someone is a widow (or daughter, son, widower, parent) of a decedent doesn't mean they will inherit from them. The individual may have left a will that bequeaths his estate to charity, or a kind neighbor, or any number of other beneficiaries. Other than a statutory forced share that some states impose, individuals are free to disregard/disinherit whomever they choose.

It's not her money. She can't treat the estate funds as if it's a joint account between her and her dead husband.

This just caught me as somewhat sad. The kinds of scams people play these days. I read in the paper the other day about some lawyer in the Chicago area who would coax people on their death bed into making him their executor, and do as he pleased with these poor people's estates - or something like that.

I plan on solving that problem by spending every last dime I have before I go!

Thanks to all for the input. We are looking into why the ATM card was issued- that is not our usual procedure.

Mary Beth, do you think we should file a SAR? If so, what would we check for the type of suspicious activity? Thank you.

Bump- Does anyone know if this would be a mandatory SAR filing and what we would check for the reason for filing? Thank you.

I would not file a SAR until I had a conversation with her and point blank asked her what was going on. It could be that the estate has been probated and she is entitled to the money and doesn't know she needs to close the estate account out and move the money into her personal account. Who knows why she is doing what she's doing. But until you ask you'll never know. I just don't file SARs for everything I 'think' looks suspicious. I'm going to investigate and ask questions before filing a SAR.

Ditto.

My grandpa: Never assume dishonesty when stupidity is an equally plausible excuse.

P.S. If "dishonesty" appears more likely, check "other" and write in "embezzlement" or "misappropriation of funds." Regardless, cancel the ATM card.

There's an option to select Defalcation/Embezzlement on the SAR Form (Box M on Part III )

Box M techically refers to internal defalcation or embezzlement:

A person who, for unauthorized personal use, embezzles, abstracts, purloins or willfully misapplies any of the moneys, funds or credits of a bank, branch, agency or organization or holding company or any moneys, funds, assets or, securities entrusted to the custody or care of such bank, branch, agency, organization, or holding company.

Ah...... Thanks rlcarey.
I had no idea that was meant to be an "internal" thing. Dictionary.com (a truly venerated source!) says "misappropriation of money or funds held by an official, trustee, or other fiduciary." I should have poked around more here http://www.bankersonline.com/aml/suspiciousactivitytypes.html first.....

Thanks again to all for your responses. I'm new at this and appreciate all the information. We will talk to the customer directly and figure out what's going on.