What to do when a First Command account holder dies

With a transfer-on-death designation, the named beneficiary provides the death certificate and government-issued ID, and the assets settle through Pershing LLC. Without one, Letters Testamentary or Letters of Administration are required.¹

On a First Command Bank deposit account, the ownership type the owner selected on the Uniform Single-Party or Multiple-Party Account Selection Form decides where the balance goes. A P.O.D. payee claims with a death certificate and ID.²

A single-party deposit account with no P.O.D. designation passes as part of the estate, under the will or by intestacy.²

The successor trustee provides proof of succession and the trust documents before any funds are released.¹

The named beneficiary claims on the beneficiary designation filed with First Command Bank as custodian. No payment is made until the beneficiary provides a proper distribution request acceptable to the custodian and any other documentation it requires.^{3, 4}

The Depository Agreement says that in certain circumstances, such as the death of an owner, the law permits, or in some cases requires, waiver of the early withdrawal penalty. The penalty is otherwise 90 days of interest at one year or less remaining, 180 days above one year, and 365 days above three years.²

Fiduciary accounts require documentation satisfactory to the bank authorizing the person to act as fiduciary before the account is established. The bank takes on no duty to monitor or enforce the terms of a trust or letters.¹

First Command Bank deposit accounts¹

Trusts for which First Command Bank is the trustee¹

Custody and clearing of First Command brokerage and advisory accounts; transfers to beneficiaries settle through it¹

The Depository Agreement requires notice when any person with a right to withdraw funds dies or becomes legally incompetent. The bank may keep honoring checks, items and instructions until it is notified and has had a reasonable opportunity to act.²

The bank 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 in the account orders it to stop. A stop payment request takes effect 24 hours after the bank accepts it and lasts 180 calendar days unless renewed in writing.²

Under the "Resolving Account Disputes" clause, the bank may hold the funds when the account becomes subject to a claim adverse to the owner's interest, to others claiming as survivors or beneficiaries, or arising by operation of law, for as long as it believes reasonably necessary.²

If an account goes untouched long enough, the balance is remitted to the state as abandoned property and must then be reclaimed from the state, not from the bank.¹