When my father passed away he had credit life insurance, which paid off his debt to the bank for his loan. The insurance wrote one check to the bank in their name and another payable to his estate. The bank said that they deposited that check into his personal checking account and allowed his step-daughter, who is POD on that account to withdraw the funds. Is this legal or correct procedure?
Untitled
No, it's not technically correct, and his step-daughter may have to reimburse the estate for any money she's removed. The check was payable to your father's estate. The POD (pay on death) account was not owned by the estate, but by the POD beneficiary, apparently the step-daughter. She was not entitled to the funds; they should have been deposited to a separate estate account, managed by the executor or administrator of the estate.
The estate, represented by the executor or administrator, should seek legal advice on alternative courses to pursue recovery of the funds.
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No, it's not technically correct, and his step-daughter may have to reimburse the estate for any money she's removed. The check was payable to your father's estate. The POD (pay on death) account was not owned by the estate, but by the POD 