Online banking pitfalls

By Beth Newcomb

While many of us are embracing the newest technology as fast as it’s introduced, Jay Nabors, a Cleveland-based attorney who focuses on estate planning, says there is a latent issue with one of the more popular options.

“Many people have decided to switch to a bank based entirely online,” he says. “The problem I’ve been running into is that when the account owner passes away, there is no branch available from which to withdraw funds by his or her heirs.”

Jay details a recent issue with a client’s estate. “I tried calling what I thought was the bank, but it turned out to be a division that had no knowledge of my client’s account,” he explains. “I had to try to figure out how to communicate with a live person so I could provide the documentation necessary to have the funds released to the deceased person’s heirs.”

Jay says that if you love online banking and don’t want to give it up, it’s important to note the account exists in your will, that it’s electronic, and how the assets can be dealt with. It’s also a good idea to name a beneficiary if you can, to avoid probate. “One online bank wouldn’t allow another client of mine to name a beneficiary, which means the account will have to go to probate if this person dies—and that delays everything,” he explains.

It’s a good idea to talk to an attorney, he adds, to make sure your online account is accessible once you pass away. And make sure you have noted somewhere your account number and the phone number for the online bank.

Jay is a partner with Weston Hurd LLP. Typically he sees clients at the firm’s office in downtown Cleveland, in addition to meeting with clients in Strongsville upon request. Virtual meetings, house calls and select evening appointments are available.

To reach Jay Nabors of Weston Hurd LLP, call him directly at 216-687-3205. His office is located at 1300 E. 9th Street, Suite 1400 in downtown Cleveland. Jay can also meet clients at 11221 Pearl Road in Strongsville.