What to do when a Bank of Hawaii account holder dies

On evidence of death in the form of a death certificate, the balance passes automatically to the surviving owners, who continue as joint owners or as an individual owner.¹

Bank of Hawaii's payable-on-death account is the Voluntary Trust (Totten trust). The named beneficiary is entitled to the funds once every owner or trustee has died, and claims with a death certificate and ID.¹

For a Fiduciary Account held by a revocable living trust, the successor trustee presents a copy of the full trust agreement with every amendment and the death certificate. The bank's guide says all designated successor trustees should be present.^{1, 2}

On a representative payee account, the agreement requires prompt notice on the beneficiary's death and a stop to all further deposits and withdrawals. If the government demands the return of post-death deposits and the account is short, the bank may take the funds from any account the payee or the beneficiary owns.¹

No early withdrawal penalty is imposed on a CD when the withdrawal follows an owner's death.¹

No early withdrawal penalty is imposed on an IRA time deposit when the withdrawal follows an owner's death.¹

If the deceased person did not live in Hawaii, Bank of Hawaii's guide says a Hawaii probate estate may need to be established through a Hawaii-licensed attorney before the accounts can be released.²

Investment accounts and Investment IRAs, custodied by Cetera Investment Services rather than the bank³

A downloadable survivor guide and checklist. For Hawaii real estate it says to engage an attorney to determine whether a notice of death with the death certificate must be filed at the Bureau of Conveyances; for a vehicle, present the death certificate at a DMV office and re-register the title.²

The bank may act as if all owners are alive and competent until it receives written notice of death. It is authorized to pay transactions the owner authorized before death.¹

After notice, the bank may freeze the account, refuse transactions, and reverse or return deposits, including government and retirement benefit payments payable to the deceased person.¹

A Bankohana Related Account stops counting toward the Combined Balance Requirement once its primary owner has died. On notice of the death of the last surviving Bankohana accountholder, the bank reserves the right to convert the account to another interest-bearing deposit account.⁴

Bankohana Premier linked accounts may be removed when their owner dies, and the Premier Account may be un-enrolled and converted.⁵

If there is any question about ownership, the bank may freeze all or part of the account pending satisfactory evidence of each person's right to the funds.¹

If the deceased person owed the bank a debt, the bank may apply funds from one account to a debt on another. The right of setoff does not reach IRA Plans, Keogh retirement accounts or consumer credit card debt.¹

On a joint account the bank "may setoff some or all of the funds in your joint account to satisfy the debts or obligations of any joint accountholder, whether that debt is owed by them individually or with others."¹

If a federal or state benefit deposit has to be returned to the payor, the bank may set off against the account to recover it.¹

Bank of Hawaii's survivor guide says certain direct deposits received after the date of death must be returned to the originating agency.²

A checking account with no transaction or maintenance update for 12 months, or a savings account for 24 months, is classified inactive. An account inactive for generally 5 years is treated as abandoned, charged the $45 Abandoned Account Fee and escheated to the state.^{1, 6}

A signed letter of instruction to Deposit Operations #118 keeps the account active while probate runs.¹

Where probate is needed, the personal representative submits Letters Testamentary or Letters of Administration.¹

Bank of Hawaii's survivor guide says the overall estate settlement process can take 12 months or longer.²