What to do when a CPB account holder dies

The deceased owner's share passes automatically to the surviving owners, subject to the bank's freeze, offset and reversal rights.¹

On a payable-on-death (informal trust) account, the funds pass automatically to the named beneficiaries who survive the last surviving owner, in equal shares unless CPB's records say otherwise. If no named beneficiary survives, Hawaii law determines ownership.¹

With no beneficiary and no joint owner, the account is released on Letters Testamentary or Letters of Administration, or on the Hawaii small estate affidavit or summary administration order.¹

On a trust-titled (Formal Trust) account, the successor trustee presents the trust agreement or Certification of Trust plus ID. CPB is custodian only and will require whatever authorization documents it deems necessary before releasing funds.¹

An estate account is a Fiduciary Account under the agreement, and CPB may require additional authorizations at any time.²

The early withdrawal penalty is waived on the death of an owner, so the CD can be closed before maturity without forfeiting interest.¹

The beneficiary completes the IRA claim and distribution election forms.¹

A $50 IRA transfer fee applies to move an inherited IRA to another custodian, and $12 per check for a distribution taken by check.³

If the keys cannot be found, the Miscellaneous Fee Schedule charges a $200 drill fee (one or two keys lost).³

Probate and estate settlement for clients who engage it⁴

Statement copies are $5 each ($25 for rush service) and check copies $4 each. Statement reconciliation, research or a special request is $35 per hour with a one-hour minimum, and wire research is $35 each.³

The Deposit Account Agreement obligates the customer to notify the bank of the death or court-declared incompetence of any owner, authorized signer or designated beneficiary.²

Once on notice of a death, CPB may freeze, offset, refuse and reverse deposits and transactions.²

CPB may reverse Social Security, VA, pension and other government or retirement benefit payments payable to the deceased person. Benefit money that arrives after the date of death is routinely pulled back.²

CPB may pay checks drawn on or before the date of death for up to 10 days after death, unless someone claiming an interest in the account orders a stop payment.²

The agreement bars stopping payment on point-of-sale debit card transactions.²

If CPB has any question about who owns the funds, it may freeze all or part of the account until it receives proof "satisfactory to us" of each person's right to the money.²

CPB may refuse a power of attorney for reasonable cause, or until the agent gives an affidavit that the document is a true copy and that "to the best of the agent's knowledge, the principal is alive." No agent can sign that affidavit once the principal has died.²

A stop payment order is $32 per item. Notary service is $5 per signature per document, and a medallion signature guarantee is $25, waived for Consumer and Business Exceptional Plans and for customers moving assets to the CPB Wealth Management Division.³

If a creditor has served process on the account, a $95 garnishment fee comes out of the balance. Official checks are $12.³

A checking account with no transactions goes dormant after 18 consecutive months, a savings account after 30 months. Abandoned funds are eventually remitted to the State of Hawaii.¹

A dormant account accrues a $10 monthly dormant service charge, and CPB charges a $55 escheat fee.³