AboutJim Meadows Expertise I can respond to most questions concerning consumer and business relationships with US financial institutions. My expertise touches on deposit and loan issues and particularly on strategies to navigate through bank policies personell and practices. I have a degree in Economics, attended law school, Graduate Shool of Banking, and Commercial Lending and Compliance Schools.
Experience I have twenty years experience as a bank CEO. Most of those years were spent operating a bank focused primarly on serving consumer/retail needs. I helped pioneer deposit and loan products for low/moderate income individuals. I currently serve on multiple bank boards and am Chairman of a Commercial Bank in Atlanta.
Question My grandfather set up a custodial account for me that under New York law was supposed to transfer to me when I was 21. When I was 22 my account was sold by my grandfather's request and a check was cut to him in the amount of $78,000. My grandfather has had dementia for several years and I am sure if he had any involvement with this situation that his wife put him up to it. He doesn't know what year it is let alone how to spend 78k. Anyway, can I sue the bank for just letting my funds go- Isn't this a case of negligence? The check that was written to my grandfather did not have my name anywhere on it. Is that legal? What would the statute of limitations be for this matter? The checked was cashed in 2004, but I just found out where my funds were located and that my funds had been dispersed after the account should have transferred to me.
Answer Tiffany, Your question is best directed to a NY attorney. However, a Custodial Account usually terminates when a minor reaches majority age (New York 21).
At termination the account balance is typically transferred to the child (now 21). Who's fault it is that the funds were not transferred to you will be the basis of your claim. The bank will say that it was the Custodian's responsibility to transfer the property to you. Unless the law and facts are absolutely clear and undisputed, collecting from the bank will be difficult. Not sure about the statute of limitations.
I'm assuming your grandfather is still alive. You may have a claim against him (custodians may withdraw funds only for the benefit of the child) You might also have a claim against his estate upon his death. Jim
