The CFO of Kellogg’s put everything in a trust for his 2 kids before passing away in 2022 — except a $56,000 checking account. But the bank wouldn’t release funds or say why. Legal or not?

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 bank wouldn’t budge

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.

What can you do in this situation?

If you or a loved one face a similar roadblock with a deceased relative’s bank account, there are steps you can take to break the deadlock.

The first step is to escalate the issue with the bank. While Elliott contacted multiple departments before giving up and calling the television station, persistence is key.

Requesting a meeting with a higher-level executive in the estate resolution department or filing a formal complaint can sometimes resolve bureaucratic issues.

Requesting legal justification from the bank is another option. While banks aren’t required to disclose specifics, they must follow the law. A probate attorney can send a formal demand letter requesting clarification on the legal grounds for withholding the funds.