[MI] What should a surviving spouse do when bank demands letters of authority?

Lexi, Chatbot

I understand how frustrating it can be when a bank does not recognize important legal documents. Can you tell me which bank is involved in this situation?

Lexi, Chatbot

Have you already attempted to resolve this issue with the bank, and if so, what was their response?

Queeneth E. Esq

Hello and welcome to our service. My name is Queeneth. I am an attorney with over 8 years of legal experience. I will do my best to assist you today. First, I need to ask you a few questions to give you the best answer. (Kindly note that our conversation does not establish an attorney-client relationship.)

Can you please let me know which state you're located in, as banking and small claims procedures can vary by location? Are you acting as an individual, or are you representing an estate or another party in this matter?

Queeneth E. Esq

What PNC is asking for is not the same thing as a small-estate affidavit or an order of assignment.

A Letter of Authority in Michigan is the probate court document that appoints a personal representative and gives that person authority to act for the estate. The official Michigan form is PC 572, Letters of Authority for Personal Representative.

Michigan’s transfer-by-affidavit process under MCL 700.3983 is a small-estate shortcut for certain personal property after 28 days. Official county guidance says the holder of the decedent’s property “must deliver” it when presented with the death certificate and the sworn statement, but that process only works if the estate does not include real property.

If the decedent owned real property, Michigan Legal Help says Assignment of Property is the small-estate process available, and that the judge signs an order you can use to get access to the person’s property. It also notes some banks are more willing to accept an assignment order than an affidavit.

Separately, PNC’s own probate instructions say that if the account is in probate, it wants a death certificate and the estate paperwork “typically known as Letters of Administration or Letters Testamentary,” i.e. formal authority papers from probate court.

For an account not in probate, PNC’s page asks for the death certificate; and for a spouse of the borrower, it asks for a marriage certificate and written confirmation you were married at the time of death.

PNC is probably not saying your Michigan papers are fake. It is probably saying its probate team wants formal probate authority rather than a small-estate shortcut, or the wrong department is reviewing the papers.

If this is a bank account:

If the estate truly qualifies for Michigan's small-estate route and there is no real property in the estate, the affidavit route may be enough under Michigan law. But if there is real property, Michigan says the affidavit route is not the right small-estate path; the assignment order is the relevant shortcut.

If this is a mortgage / home-loan / successor-in-interest issue:

PNC's deceased-borrower page treats that differently and asks for the spouse documents, not necessarily letters of authority, unless the matter is being handled as a probate estate.

Also, if the PNC account was:

Joint with right of survivorship, PNC's account agreement says the funds belong to the surviving joint owner and are not part of the estate.
POD/payable-on-death, those funds usually pass to the named beneficiary and are also not part of the estate.

So before pushing the small-estate papers, check what kind of asset this is:

• Sole account in decedent's name
• Joint account
• POD account
• Mortgage/loan
• Safe deposit box or other asset

Ask PNC, in writing, which exact document they say is missing and whether they are treating this as probate, non-probate, or successor-in-interest.

Ask them to route it to the PNC Notice of Death/Probate team rather than just a branch employee. PNC lists that team and its probate contact process on its website.

If you already have a Michigan Order for Assignment, send that with the death certificate and ask them to state in writing why they believe it is insufficient under Michigan law.

If they still insist on formal authority, that usually means you may need to open probate and get Letters of Authority.

If PNC keeps refusing to process the matter after you give the correct documents, you can escalate through the bank and then file a complaint with the CFPB or the OCC, both of which handle complaints about banks.

Queeneth E. Esq

You’re welcome. I'm happy to have assisted you today.