Brian Blum
01-06-2008, 09:53 PM
I know that most members of the AZVJC (myself included) are inclined to take the Do-It-Yourself approach to solving most problems. The DIY approach is almost always more fun and definitely more entertaining than hiring a professional.
Of course, when things don't go as planned, the DIY approach often ends up being more expensive than hiring a professional because mistakes can be expensive.
Anyway, the following is from a posting to a legal message board from an attorney looking for advice on how to fix the mess his client got himself into. Please please please be careful with DIY legal work. I'm not saying you can't do it yourself, but it might be cheaper in the long run to hire a professional.
For estate planning reasons son puts his name on his father's bank account. Dad's account contained deposit funds completely unrelated to any activity of son. Son obtained a business loan with the same bank where Dad kept his account.When son's loan went into default the bank froze the assets in Dad's account. Does the source of the funds in the account matter, i.e., did not come from son? Does the timing of addition of son's name natter, i.e., the amount on deposit before the change would be free of the offset? Other than a performance bond, or replacement of the funds with a like amount, is there a defense to this use of the bank's right of offset?
It seems to me that all this guy wanted to do was have his money go to his kid when he died. Clearly this was not the best way to accomplish this goal. Ultimately, I think the Dad will get his money back. But, I can guarantee the legal fees to unwind this mess were much more than it would have cost to hire an attorney to do a proper plan.
Brian
Of course, when things don't go as planned, the DIY approach often ends up being more expensive than hiring a professional because mistakes can be expensive.
Anyway, the following is from a posting to a legal message board from an attorney looking for advice on how to fix the mess his client got himself into. Please please please be careful with DIY legal work. I'm not saying you can't do it yourself, but it might be cheaper in the long run to hire a professional.
For estate planning reasons son puts his name on his father's bank account. Dad's account contained deposit funds completely unrelated to any activity of son. Son obtained a business loan with the same bank where Dad kept his account.When son's loan went into default the bank froze the assets in Dad's account. Does the source of the funds in the account matter, i.e., did not come from son? Does the timing of addition of son's name natter, i.e., the amount on deposit before the change would be free of the offset? Other than a performance bond, or replacement of the funds with a like amount, is there a defense to this use of the bank's right of offset?
It seems to me that all this guy wanted to do was have his money go to his kid when he died. Clearly this was not the best way to accomplish this goal. Ultimately, I think the Dad will get his money back. But, I can guarantee the legal fees to unwind this mess were much more than it would have cost to hire an attorney to do a proper plan.
Brian