What to do when a Bank of the Sierra account holder dies

Provided at a branch.¹

On a payable-on-death or informal Totten trust (in-trust-for) account, the surviving payees claim directly with the death certificate and ID. A payee must have survived all owners, and surviving payees take equal shares unless an unequal split is expressly reflected in the bank's records.²

Ownership passes to the surviving owners, subject to the bank's setoff and security interest in the account.²

On a tenancy-in-common account, the deceased owner's share passes to the estate, not to the co-owner.²

The early withdrawal penalty can be imposed on a time account "even if you don't initiate the withdrawal," including one caused by setoff or legal process. After a partial early withdrawal, the bank may close the account and impose the penalty on the entire balance.²

Safe deposit box rentals are not covered by the Deposit Account Agreement, which says only that they "will be subject [to] separate terms and conditions."²

A forcible entry of a box is priced at a $160.00 minimum plus a $25.00 missing-key fee.³

The HSA beneficiary designation made at account opening controls.¹

A deposit account claim does not pause a Bank of the Sierra mortgage or Sierra Reserve line of credit. Payments continue while the claim is reviewed.¹

"You agree to immediately notify us about the death or incapacity of any owner or authorized signer on your account. Until we receive notice satisfactory to us in writing, and have a reasonable opportunity to act on it, we may continue to honor items drawn on your account by the authorized signer(s)."²

"Even with knowledge, we may pay checks drawn on the account for ten (10) days after the date of death."²

If an owner or authorized signer dies, the bank may suspend, refuse and reverse transactions or deposits, for example automatic federal direct deposits of benefit payments belonging to the deceased person.²

If the bank credits an amount that should have been returned to the government under a direct deposit plan, it may "deduct the amount from your account or from any other account you have with us without prior notice and at any time," which can include a survivor's own account.²

In a dispute over ownership or conflicting demands, the bank may freeze the account until it has evidence satisfactory to it that the dispute is resolved or there is general agreement on payment, or require the signatures of all authorized signers.²

It may also close the account and issue one cashier's check jointly payable to all owners, mailed or delivered to any one of them or to the address of record, or file an interpleader and charge its costs and attorneys' fees to the account.²

A dormant account keeps being charged the normal monthly service charge, and the bank may refuse withdrawals from it until it is satisfied it is dealing with the true owner.²

After three years of inactivity the balance may be turned over to the State of California, with a fee charged against the account for the escheat notice. Recovery is then through the State Controller's office in Sacramento.²

The arbitration provision binds account beneficiaries and their heirs, trustees and representatives. It can only be rejected by certified mail within 30 days of account opening.²

Account Research and Statement Balancing Service are $29.50 per hour (minimum one hour), Special Statement Request/Copy $6.00 per statement, Account History Printout $4.00, Photocopy of Paid Check $1.00 per item, and Photocopies $0.50 per page.³

Legal Process (a levy, garnishment or similar order against the account) is $100.00. Early Account Closure within 6 Months is $25.00 for checking and $5.00 for savings.³