Not even death stops banks from deducting fees

Bank of America has deducted $12 monthly fees from the account of a customer who died in March. And it can legally continue doing so for years.

Rocco Bersane died in March at the age of 56 after being hospitalized for a gallbladder infection and liver failure.

At the time of his death, Bersane had about $1,175 in a Bank of America checking account. His disability-related Social Security checks were automatically deposited there.

BofA acknowledged in a letter to Bersane's next of kin shortly after his death that it had received notification of his passing.

Yet since that time, the bank continued deducting a $12 monthly maintenance fee from Bersane's account.

"The man is dead," said Patricia Burge, 60, of Norwalk, who lived with Bersane for 19 years. "How do you keep charging fees to a dead man?"

That's the beauty of being a bank, apparently. When it comes to fees, the notion of "until death do us part" has little meaning.

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Bersane's experience in the banking afterlife highlights the importance of getting your financial house in order before the worst happens.

It also demonstrates a need for laws or regulations that address a bank's responsibilities in such circumstances. As it stands, BofA can continue eating away at a dead customer's funds for years.

"Is it wrong morally? Yes," said Marlene Seltzer, a Tarzana probate attorney. "Legally? No. The law says they can get away with it."

Bersane died without a will. Under Section 13100 of the California Probate Code, any amount less than $150,000 can be claimed by a deceased person's heirs after 40 days.

I reached Bersane's son, Rocco Bersane Jr., 32, at his home in North Carolina. He said he was aware of the money sitting in his father's checking account. However, he's unsure how to proceed.

He said he spoke with the bank and was left with the impression that the paperwork for recovering his father's funds was so complicated, it could require hundreds of dollars up front in attorney fees. If so, Bersane said, it may not be worth it.

But he knows this much: BofA shouldn't be entitled to keep charging his dead father a monthly checking-account fee.

"That's just wrong," Bersane said. "He's no longer with us."

Under California law, funds in inactive bank accounts must be handed over to the state for safekeeping after three years. During that three-year period, though, a bank can keep charging fees to maintain the account.

That would be understandable if a bank had no clue about a customer's whereabouts. The bank arguably would be acting in a customer's interest by serving as custodian of the customer's money.

In this case, however, BofA knows full well that Bersane won't be turning up within the next three years or any time thereafter. He's dead.

Furthermore, the bank knows that Bersane has an heir who is legally entitled to the money.

In a letter dated March 22 to Bersane and Burge, the bank said that it had been "informed that Rocco Bersane passed away." It requested a copy of his death certificate "to make sure the financial relationship is handled appropriately."

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