When former Kellogg’s CFO Charles Elliott passed away in 2022, he left behind a carefully planned estate – with one flaw.
Everything had been placed in a trust for his two children, ensuring a smooth transition of assets. But one small oversight — a $56,000 checking account with no designation — turned into a major legal headache.
His daughter, Christine Elliott, expected Chase Bank to release the funds to the trust, so it could then be sent to her and her brother. Instead, she was met with silence.
“So I provided what they said I needed, and then he called back and said, ‘It’s not enough,’” Elliott told 7News Miami. “I said, ‘Well, what do I need?’ And he said, ‘I can’t tell you.’”
In estate law, financial institutions are required to follow strict protocols when handling accounts of the deceased. If an account is not specifically designated to a beneficiary or placed in a trust, it typically falls under probate, according to Keystone Law Group.
In this case, Elliott provided all necessary documents, yet the bank still refused – for about a year – to release the funds or explain why.
Are the bank’s actions legal? Unfortunately for the Elliotts, yes. But here’s how they were still able to get the money, plus interest.
The good news is that Elliott finally received her check – including more than $2,000 in accrued interest – after 7News legal expert Howard Finkelstein hopped on the case. But what took the bank so long?
Banks have the right to withhold information about an account’s status, which is typically treated as private information and not privy to anyone but the account holder.
Finkelstein explained the situation bluntly.
“No, they don’t have to tell you, but they do have to tell a judge,” he told 7News. “In this case, a judge signed an order to transfer the funds to the trust. Now the bank has to explain why they won’t do it. If the judge doesn’t like that explanation, they can fine the bank and force them to release that cash.”
The bank could have been withholding the money for several reasons.
Regardless, without an explanation, the family was left in the dark. And frustration and legal expenses can mount for anyone in the same scenario.
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