What to do when an Atlantic Union account holder dies

Once the bank receives proof that all owners have died, the payable-on-death, ITF or TOD beneficiary presents a death certificate and photo ID. Multiple beneficiaries share equally.¹

Every joint account is deemed joint with right of survivorship, so ownership passes to the surviving owner or owners. After notice of death the bank may restrict or prohibit further withdrawals until it is satisfied it has met its obligations.¹

A tenants-by-the-entireties account is recognised only where the bank's records clearly show it, through a signature card signed by married owners designating that ownership. Otherwise a married couple holds the account as ordinary joint tenants with right of survivorship, without entireties creditor protection.¹

For an account in one name with no beneficiary, the personal representative presents Letters Testamentary or Letters of Administration.¹

The successor trustee presents the trust documentation the bank requests.¹

The beneficiary presents a death certificate and completes distribution paperwork. Unequal shares among beneficiaries apply only if the owner put them in writing.¹

On a representative payee account for Social Security or VA payments, the payee must notify the bank promptly when the beneficiary dies and stop all further deposits and withdrawals. The payee is personally liable to refund post-death payments the government demands back.¹

A North Carolina joint account opened before June 1989 may still be governed by the older survivorship statute. Where it is, the agreement lets the bank pay the portion that would go to the Clerk of Court or the estate directly to the surviving co-owners, subject to the personal representative's collection rights.¹

Trust accounts and wealth relationships²

Mortgages and home equity lines of credit²

The agreement warns that the "TYPE OF ACCOUNT OWNERSHIP MAY DETERMINE HOW FUNDS ARE PAID UPON DEATH, EVEN IF THE WILL STATES OTHERWISE."¹

The bank may accept direction from an affiant, or from a representative, guardian or conservator appointed in the deceased person's state of residence even if that differs from where the account was opened. It may require additional documentation before acting.¹

The agreement requires that the bank be notified of the death. Until it has notice, the bank may keep acting as if the owner is alive.¹

After receiving notice of death, the bank may freeze the balance and refuse to accept transactions.¹

After notice of death the bank may reverse or return deposits, so direct-deposited benefit payments that arrive after the date of death can be pulled back.¹

The bank may continue to honor checks and instructions until it knows of the death and has had a reasonable opportunity to act. It may pay or certify checks drawn on or before the date of death for up to ten days after the death, unless someone claiming an interest in the account orders a stop payment.¹

If the deceased person owed the bank a debt, it may exercise setoff or its security interest against the balance after death. It has those rights even over a surviving joint owner, a payable-on-death payee or an ITF beneficiary.¹

Atlantic Union's agreement says that if the bank incurs a tax liability by paying the balance to the estate, the estate must repay it.¹