What to do when a Central Bank account holder dies

An individual account with no beneficiary and no joint owner is an estate asset. The executor or administrator presents Letters Testamentary or Letters of Administration from the probate court.¹

The balance belongs to the surviving owner or owners, who hold as joint tenants with survivorship if more than one survives. An account held by spouses as tenants by the entirety, in states that recognize it, passes to the surviving spouse.¹

The named beneficiaries may withdraw once all persons who created the account have died and the beneficiary is living. Two or more surviving beneficiaries take in equal shares, without right of survivorship.²

The ownership and beneficiary clause also provides for LDPS registration of beneficiaries.²

The successor trustee takes over a trust-titled account under the trust agreement, with no probate needed. If Central Trust Company administers the trust, the assigned trust office coordinates the settlement, not the retail line.¹

Trust accounts administered by Central Trust Company follow the trust's own settlement timeline, which the company describes as taking months, and for a probated estate potentially years.¹

The Fiduciary Accounts clause covers accounts opened by a trustee, executor, administrator or conservator. The bank disclaims any duty to monitor or enforce the trust or the letters.²

The bank may impose a time-deposit penalty on an involuntary withdrawal, such as its own setoff or legal process. On a partial early withdrawal it may close the account and penalize the entire balance.²

IRA beneficiaries claim under the IRA agreement.¹

HSA Central health savings accounts; the retail line does not administer them¹

Central Bank mortgages; a separate team from retail Customer Service¹

Trust accounts it administers, through the trust office nearest the account¹

A duplicate statement or form is $5.00 each, and an account activity or instant statement $4.00.¹

"You agree to notify us promptly if any person with a right to withdraw funds from your account(s) dies." The same notice is required when such a person is adjudicated incompetent.²

The bank may keep honoring the deceased person's checks, items 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 orders a stop payment.²

The bank may accept a stop-payment order "from any one of you," but the order must arrive in time for the bank to act on it before the cutoff.²

The bank "may place an administrative hold on the funds in your account" when survivors or beneficiaries make competing claims. The hold lasts until a legal proceeding decides the claim or the bank receives "evidence satisfactory to us that the dispute has been resolved."²

The bank disclaims liability for items dishonored because of that hold.²

The bank may set off "without prior notice" against a debt that is due and payable. The right does not apply to an IRA or similar tax-deferred account, or where "the debtor's right of withdrawal only arises in a representative capacity."²

An authorized signer's authority ends at the owner's death: "the authorization is automatically terminated by the death of the owner." The bank may keep honoring that signer's transactions until it has notice and a reasonable opportunity to act.²

A trusted contact's role also ends at death. A trusted contact never had authority to move money and cannot settle the account.¹

A checking account is dormant once the bank has lost contact and there have been no deposits or withdrawals for three months or more. A savings account on monthly statements is the same, or 13 months if statemented quarterly or annually. The dormant fee is $15.00 per monthly cycle.¹

A checking account is inactive after 12 months with no deposits or withdrawals, and a savings account after 24 months. "Checking and Savings Accounts with balances of $15.00 or less, are subject to a fee equal to the balance if they are considered Inactive or Lost Contact."¹

A stop payment is $35.00 per item.³

A verification of deposit is $20.00. If a creditor has already served the account, the garnishment or levy fee of $125.00 "(or remaining account balance)" comes out before the estate receives anything.¹