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chopper1979

Blocked minor settlement acct closed by bank?

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Personal injury claim with one minor party who was awarded enough to merit a blocked/restricted trust account via probate court. Petition filed, Conservator appointed, account set up, Acknowledgment signed by bank rep and then filed in probate court.

Approximately a month later, the Conservator receives a letter from the bank along with a check for the full amount of the settlement, informing her the account has been closed out. That she's aware of, there was no communication or notification to the court.

 

What does the Conservator need to do to prevent being held in contempt of the original Order? She can't just open a new account, she has no Order as it was filed showing the account was set up. What would she need to file in court? Or is this going to require a probate attorney's help?

 

Can the bank close out court-ordered accounts without first obtaining a court order or at least notifying the court? The Conservator called the bank rep she met with initially and all they would tell her is they can close accounts at their discretion.

 

Thanks!

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The bank can close the account unless there is a court order that specifically directed the bank to provide the account. As the bank was not likely a party to this legal proceeding I'm guessing that there is no such court order directed to the bank.

 

What the conservator needs to do is comply with the court order that the court entered with the respect to the award. I've not read that order so I don't know exactly what the conservator must do. If the conservator doesn't know the answer to that then he or she ought to take a copy of the order to an attorney for advice. Probably setting up the blocked account with another bank would suffice, but not having read the order I cannot say that for sure.

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57 minutes ago, chopper1979 said:

What does the Conservator need to do to prevent being held in contempt of the original Order?

 

Since we have no idea what the "original [o]rder" says, we have no way of knowing if it's even possible for the conservator to be in contempt of it.  That being the case, all anyone here can tell you is that the conservator should discuss the matter with her attorney.

 

 

59 minutes ago, chopper1979 said:

She can't just open a new account, she has no Order

 

Has she tried to open a new account and been told it's not possible because of the lack of a court order?  If not, why do you or does she believe this to be the case?

 

 

1 hour ago, chopper1979 said:

Can the bank close out court-ordered accounts without first obtaining a court order or at least notifying the court?

 

That the bank did do this indicates that the only possible answer to this question is yes.

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