My father died last year. He had four CDs at one bank and they were not up against any loans. Can the bank wipe out the CDs before the family can get the estate probated and wipe his checking and saving account out to pay loans?
Yes, the bank has the right to offset the deposits against the loans even if they were not specifically pledged. The estate has an obligation to repay the debts anyway, so this is a faster way around that.
Certainly, we don't know all of the owners of the accounts or obligors of the loans. If other people were involved, and you dispute the bank's actions, you would have to take that up with the legal system.
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Yes, the bank has the right to offset the 