What to do when an East West Bank account holder dies

Sent by the institution on request.¹

On a community property account, one-half belongs to the surviving spouse and the deceased spouse's half goes to that spouse's estate. The bank may hold one-half of the funds and refuse transactions on them until the surviving spouse and the personal representative or heirs agree.²

The bank may refuse to freeze a community property account at all until it receives a death certificate or other proof satisfactory to it.²

Joint accounts with right of survivorship generally remain accessible to the surviving account holder. The survivor presents the death certificate to have the account updated.¹

On a tenants-in-common account held in California, Georgia, Massachusetts, Nevada or Washington, the deceased owner's share "goes to the estate or other legal successor of the deceased owner." The bank may hold the funds and refuse transactions until the surviving owners and the personal representative or heirs agree.²

Washington accounts alone can be opened as joint tenancy without right of survivorship. The deceased owner's interest then goes to that owner's payable-on-death payee or estate.²

Payable-on-death funds pass directly to the named beneficiaries without probate, and the account is not part of the deceased owner's estate. The beneficiary provides a certified death certificate and government-issued ID to claim the funds.¹

For California, Georgia, Massachusetts, Nevada and Washington accounts, an "In Trust" (totten or payable-on-death) account "will pass to the beneficiary upon the death of the last surviving account owner," in equal shares if there is more than one beneficiary. A beneficiary who dies before the owner revokes the trust.²

You agree to tell the bank promptly that a box holder or authorized signer has died. The bank "may deny access to the heirs or other legal representatives of the holder or the holder's estate until they provide us with suitable identification and proof, satisfactory to us, of their authority to access the box."²

On the death of one holder of a jointly held box, the remaining holders have the exclusive right of access, with no notice owed to the deceased holder's representatives. The bank may require an inventory before releasing the contents, and all authorized signers to act together.²

On a New York tenants-in-common account, the deceased owner's interest passes to that owner's payable-on-death payee or, if none, to the estate. A New York "Totten Trust" is owned by the trustee, and the beneficiaries have no right to the funds during the trustee's lifetime.²

A New York Totten Trust passes to the named beneficiary on the trustee's death "Unless the trustee expressly revokes, terminates, or modifies the trust account in the trustee's will," so a will can redirect one. If no beneficiary survives the last trustee, state law determines ownership.²

On a Texas trust or POD account, "A beneficiary may not withdraw funds from the account before all trustees are deceased." The account "is not a part of the trustee's estate and does not pass under the trustee's will or by intestacy, unless the trustee survives all of the beneficiaries and all other trustees."²

For a Texas account, the signature card selects the account type. A Texas convenience account passes through the last surviving party's estate, and the bank may pay a convenience signer until it receives notice of that party's death.²

Mortgages, home equity lines of credit and closed-end second loans¹

The Deposit Account Agreement asks you to notify East West Bank immediately of the death of any owner, authorized signer or designated beneficiary.²

Once it learns of a death, the bank may "freeze, offset, refuse and/or reverse deposits and transactions (e.g., governmental or retirement benefit payments payable to the deceased)." Social Security or pension payments for periods after the date of death can be taken back out of the account.²

For 10 days after the date of death, the bank may pay checks drawn on or before the date of death, unless a stop payment is ordered or an adverse claim is made by a person claiming an interest in the account.²

If the bank has any question about who owns the funds, it may freeze all or part of the account until each person proves, to the bank's satisfaction, their right to the funds.¹

The bank may require letters testamentary or other appropriate documentation before it will consider paying the heirs or personal representative.²

The agreement says the bank "may rely solely on our account records to determine the ownership of your account." That record, not the will, decides who gets paid.²

Governing law is the state where the account is held. An account opened digitally through Online Banking is generally established at a California location under California law, unless it was opened through a code or link tied to an out-of-state branch.²