Q: I am trustee of my recently deceased father's living trust. I am trying to gain access to his bank account.
The account is listed in the trust but no beneficiaries are listed. I have the trust in hand with all notarized documents and the death certificate. The Bank is telling me that I need a letter of authority to get access to the funds. There is nothing on file at the Van Buren County probate Court. Can I file for letters of authority without having to probate the whole trust? Or is the bank mistaken?
A:
You do not need letters of authority. That is for a probate estate. If the bank account was already owned by the trust, then what you likely need is a signed acceptance of successor trustee, showing that you have taken over as trustee and accept your obligations as trustee of the trust. The exact form and how of this should be spelled out in the trust itself.
On the other hand, just because a bank account was listed in the trust doesn't mean the account was actually owned by the trust. The fact the bank is asking you to get letters of authority suggests that maybe this bank account was never properly titled in the name of the trust in the first place, and remained in your deceased father's name at death. In that case, you may need letters of authority after all because it was a probate asset, not a trust asset. If the amount of money in the account is more than $23,000, you'll need to open probate. If the amount of money is less than that, other procedures can be used in lieu of opening a full-fledged probate.
If you need further assistance, you should consult with an estate planning and probate attorney for the help you need.
1 user found this answer helpful
A:
IF AND ONLY IF the trust really is the owner of that bank account, the bank is wrong. You only need letters of authority in Michigan for PROBATE assets, which a trust bank account is not.
IF however as is often the case, there is a problem with the title of the account, and it really ISN'T in the trust, you will need letters of authority to begin probating that and any other probate asset. I strongly urge you to consult with a local probate attorney who can provide more thorough guidance about what (if any) sort of probate is needed. It may be as simple as filing an affidavit, but without examining everything it is hard to provide real advice.
--This answer is offered for informational purposes only and does not constitute legal advice or create an attorney/client relationship. I am licensed to practice in Michigan only. Please seek competent local legal help if you feel you need legal advice!
1 user found this answer helpful
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