What to do when an EverBank account holder dies

Available to download.¹

Under Section 3.1.10.7, after all account creators die, the surviving named payable-on-death beneficiaries take in equal shares with no right of survivorship. The account is not part of the estate.²

A joint account with right of survivorship passes to the surviving owner or owners, then to the payable-on-death beneficiaries on the last owner's death.³

An individual account with no payable-on-death beneficiary passes through the estate.³

An IRA passes to the named IRA beneficiaries.³

On an IRA CD, a withdrawal that is part of a required minimum distribution carries no early-withdrawal penalty (Section 4.1.5.4).²

Fiduciary and estate accounts (Section 3.1.10.5) require documentation acceptable to EverBank: a full trust agreement or trustee certificate, or Letters Testamentary or Administration for an estate. For an account established by court order, a court order may be required before funds can be disbursed.²

The early-withdrawal penalty is not automatically waived on death: it may be waived at EverBank's discretion on the death or legal incompetence of any account holder (Section 4.1.5.4). The same rule applies to CDARS CDs (4.1.6.7) and World Markets foreign-currency CDs.²

On a MarketSafe CD, death is the only event that permits an early withdrawal (6.3.1.4), but taking it forfeits Principal Protection, all index upside and all interest. Section 6.2.13.2 says the beneficiary may lose the benefit of taxes the decedent already paid on the CD.²

For Rhode Island residents, the CD early-withdrawal penalty is waived on the death or legal incompetence of all account holders.²

Foreign currency, precious metals (Metals Select) and MarketSafe CD accounts, serviced separately from deposits³

Foreign currency, Metals Select and MarketSafe CD accounts, for callers outside the US³

You agree to notify EverBank immediately of an account holder's death and to provide evidence of it "sufficient in our reasonable discretion" (Section 3.1.36, Death Or Adjudication Of Incompetence).²

EverBank may place a hold on the account and prevent withdrawals until all required release-of-funds procedures are completed. Until substitute or additional account holders or authorized signers are established, it may honor or dishonor checks, items and instructions at its discretion.²

Maturity instructions standing on a CD may become ineffective if EverBank receives written notice of the death before the CD matures.²

EverBank 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. It may keep honoring checks and instructions until it knows of the death and has had a reasonable opportunity to act.²

EverBank may freeze, refuse or reverse deposits and transactions. If salary, pension, Social Security, SSI or any other government benefit payment is credited after the date of death, it may debit the account for the full or partial amount and return it to the payer.²

If two people claim the same funds, EverBank may refuse to pay anyone, a named payable-on-death beneficiary included, until every claimant consents in writing, a court directs payment, the conflicting claim is withdrawn in writing, or EverBank is satisfied the dispute is resolved (Section 3.1.42).²

The same section lets EverBank pay a claimant even while it knows of a dispute, if that claimant posts security and indemnification EverBank finds suitable.²

The agreement provides: "For legal purposes, for accounts opened in a financial center, all deposits are considered to be made and held in the state where that financial center is located. Otherwise, deposits are considered to be made and held in the state of Florida."²

The laws of the owner's state of domicile do not apply unless the agreement says so. An account opened online or by phone follows Florida law, one opened at a California financial center California law, and one at the Flushing, Queens center New York law.²

Under Section 3.1.11 EverBank has no duty to review the legal validity of a power of attorney and may refuse to honor one "with or without cause." It has an Add Power of Attorney form.^{2, 4}