What to do when a Cathay Bank account holder dies

Completed by the named IRA beneficiary, or the trustee where a trust is the beneficiary. Provided at a branch.¹

An account in one name with no P.O.D., Totten Trust or survivorship is settled with Letters Testamentary or Letters of Administration and the personal representative's photo ID.¹

The deceased owner's interest passes immediately to the surviving owner or owners. The death certificate removes the deceased person from the account.¹

On a joint account held as tenants in common, the deceased owner's proportionate share passes to the estate and needs the estate's documents.¹

The payee becomes the account holder at the last owner's death, and brings the death certificate and photo ID.¹

On a Totten Trust account, the named beneficiary or beneficiaries own the account at the trustee's death, and bring the death certificate and photo ID.¹

On a formal trust account, the successor trustee brings the death certificate, the Certification of Trust or the full trust agreement with all amendments, and photo ID.¹

Under its Fiduciary Accounts clause, Cathay Bank may require whatever documents and authorizations it deems necessary from an estate, guardianship or conservatorship claimant, at account opening and at all times afterward, to satisfy itself of the person's authority.²

The named IRA beneficiary completes Cathay Bank's IRA distribution paperwork. A trust named as IRA beneficiary is claimed by the trustee with the trust documents.¹

Multiple P.O.D. payees on a California account take equal shares.²

Multiple P.O.D. payees on a Massachusetts account take equal shares.²

Multiple P.O.D. payees on a Maryland account take equal shares.²

Multiple P.O.D. payees on a Washington account take equal shares.²

On a Washington account, an effective disposition by will overrides the beneficiary designation.²

Multiple P.O.D. payees on an Illinois account take as tenants in common, with no survivorship.²

On a Texas account, the bank's set-off right does not reach a liability from a home equity loan secured by Texas homestead property.²

Section 16 of the agreement obligates you to notify the bank immediately of the death of any account holder, authorized signer or designated beneficiary.²

Cathay Bank may freeze all or part of the account if it has any question as to the ownership of funds, until it receives proof satisfactory to it of each person's right to the funds.²

Cathay Bank may freeze, offset, refuse or reverse deposits and transactions. The clause names governmental or retirement benefit payments payable to the deceased as its example.²

If the bank is obligated to return funds removed from the account after the death, the other account holders agree to reimburse it.²

Cathay Bank may keep honoring items and instructions given earlier by a previously authorized person until it receives specific written notice not to. A new or updated signature card does not, by itself, end a pre-existing payment or transfer plan.²

Section 39 lets the bank pay a check presented more than six months after its issue date, and the bank does not normally examine the date on checks, so the deceased person's outstanding checks can still clear.²

Section 37 lets the bank set off deposit funds against obligations any account holder owes it. It does not apply to an IRA or tax-qualified retirement account.²

The agreement applies the law of the state where the account is maintained. Payout rules for multiple P.O.D. payees differ by that state: CA, MA, MD and WA share one section, and IL, NJ, NV and TX each have their own.²

Under Section 23, an account with no deposit, withdrawal or other communication showing interest is eventually reported abandoned to the state named in the account address. Interest payments and some electronic credits do not count as activity.²

Once the funds go to the state, the claim has to be filed with the state rather than with Cathay Bank.²