What to do when a First Horizon account holder dies

Completed by the requestor. Available to download.¹

A beneficiary cannot withdraw until every person who created the account has died, the beneficiary is then living, and the bank is not required by state law to pay a parent, custodian or guardian instead. Several surviving beneficiaries own the account in equal shares, without survivorship.²

The balance belongs to the surviving owner or owners "even if the decedent had a will directing disposition to someone else."²

The bank may pay out all or part of the funds "on the instructions of either the decedent's personal representative or any surviving owner." The estate and the survivors keep their rights to their proper shares, which they "may seek to have determined judicially."²

The early withdrawal penalty does not apply to an early withdrawal in case of death or mental incompetency.²

The bank penalty for withdrawing an IRA time deposit before maturity does not apply in the case of death.²

Executors, administrators and conservators under court orders may open and maintain a fiduciary account. Where there are several fiduciaries, one fiduciary's signature is enough to withdraw unless the signature card or another account document says otherwise.²

Mortgages and home equity loans or lines of credit whose first payment goes to First Horizon Bank³

First Horizon mortgages whose first payment goes to Nationstar Mortgage³

Securities, advisory and insurance products offered through First Horizon Advisors⁴

The Depositor Agreement asks the customer to notify the bank promptly if any person with a right to withdraw funds from the account dies.²

First Horizon may continue to honor the deceased person's checks, items and instructions until it knows of the death and has had a reasonable opportunity to act on that knowledge.²

An authorized signer's authority "is automatically terminated by the death of the owner," but the bank may honor the signer's transactions until it has written notice or actual knowledge and a reasonable opportunity to act.²

First Horizon 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 payment.²

A power of attorney "continues until your death or the death of the person given the power." The bank may honor the agent's transactions until it has specific account-related written notice of the death and a reasonable opportunity to act.²

When the U.S. Treasury seeks reclamation of items or electronic transfers credited to the account, First Horizon may debit the account or otherwise collect the amount, and the account holder indemnifies the bank for its losses.²

The bank may set off account funds against a due and payable debt owed to it, and a payable-on-death beneficiary's interest is subject to offsets or claims against the owner or the estate. Setoff does not apply where the debtor's right of withdrawal arises only in a representative capacity.²

First Horizon may follow the instructions of an executor, administrator, conservator, guardian or other personal representative given apparently authentic copies of letters of appointment issued by a court "without regard to jurisdiction."²

For consumer accounts, the arbitration provision applies to the account owners and beneficiaries and to their heirs, trustees, agents and other representatives.²

The fee schedule lists a $100 Legal Action Processing Fee, $3 per item for Account Research and Records, $2 per Statement Printout request, $10 per cashier's check and $37 per stop payment request.⁵

A $5 monthly Dormant Fee applies to a checking account with a balance under $5,000 and no deposits or withdrawals in one year. Savings accounts and Essential Checking are not charged it.⁵

An account is dormant after one year without deposits or withdrawals (two years for savings). Once it is dormant, checks, drafts and electronic transfers "will be returned without liability to the Bank even if funds are available in your account."²