What to do when a First Interstate account holder dies

A Single-Party Account with no beneficiary named is an estate asset.¹

A Single-Party Account with POD pays the named Pay on Death beneficiary who survives the owner. On a Multi-Party Account with Right of Survivorship and POD, the money passes to the surviving co-owners first, and to the POD beneficiaries only after all owners have died.¹

On a Revocable Trust or Pay-On-Death account, beneficiaries cannot withdraw until all persons creating the account have died and the beneficiary is then living. Multiple surviving beneficiaries take equal shares with right of survivorship.²

A Multi-Party Account with Right of Survivorship is payable to the surviving co-owners.¹

The account is updated once a copy of the death certificate is presented, so the deceased owner can be removed.³

The bank will disburse a joint account at the request of any co-owner regardless of contributions, "even if a co-owner is incapacitated, deceased, or whether the account is designated as having a right of survivorship."²

Without a right of survivorship indicated on the signature card, the account is payable to any surviving co-owner or to the deceased owner's authorized representative, heirs or successors.²

A revocable trust account passes under the trust to the successor trustee.¹

Timing depends on the successor trustee documentation and, for Wealth Management accounts, on the Trust and Estates team.³

A safe deposit box with no key found is drilled at actual cost, with a $20 replacement key fee.⁴

Trust, agency and IRA accounts it administers, which it settles instead of the branch³

Successor in Interest requests on a mortgage, home equity loan or HELOC (option 3)³

First Interstate health savings accounts, which it custodies; an HSA death claim is filed with HealthEquity³

Accounts opened at the Arizona and Kansas branches First Interstate sold in 2025 or 2026³

Accounts opened at the Nebraska branches that transitioned to Security First Bank³

Under "Death or Incompetence," you agree to notify the bank promptly when any person with a right to withdraw dies. The bank may continue to honor checks, items and instructions until it knows of the death and has had a reasonable opportunity to act on that knowledge.²

First Interstate 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 a stop payment.²

If the bank has to reimburse the federal government for a benefit payment direct-deposited after the death, it may deduct that amount from the account or from any other account you hold with it, without prior notice.²

Under "Setoff and Security Interest," a past-due debt owed to the bank can be paid out of the account. The right of setoff does not reach an IRA or similar tax-deferred account, or apply where the debtor's right of withdrawal arises only in a representative capacity.²

An agency is automatically terminated upon the death of the owner. The bank may keep honoring the agent's transactions until it has written notice or actual knowledge of the death and a reasonable opportunity to act.²

The law of the state where the account was opened governs. If the account was not opened in person, the law of the home office state applies, which the booklet says is Montana (Billings); the law of the owner's state of residence may control certain matters.²

The booklet says the account is located in the branch where it was opened, and that you may call the Client Contact Center to confirm where it is located.²

Under "Resolving Account Disputes," the bank may place an administrative hold on the funds when the account becomes subject to an adverse claim, a claim by others claiming an interest as survivors or beneficiaries, a claim arising by operation of law, or a dispute between owners.²

The hold lasts as long as the bank believes reasonably necessary for a legal proceeding to decide the dispute, or until it receives satisfactory evidence the dispute is resolved. The bank is entitled to its reasonable attorney fees and costs in resolving the dispute.²

The booklet carries an Arbitration Agreement and class action waiver: either side may elect binding individual arbitration before the American Arbitration Association. An informal-resolution notice by certified mail to the bank's Legal Department, plus a 60-day cure period, is a condition of filing.²

Any action to enforce a right under the agreement must be commenced within one year after the cause of action accrues, or the minimum period applicable law allows, whichever is longer.²

The booklet states that when one spouse dies, ownership of community property does not automatically pass to the survivor, and the deceased spouse can pass that interest by will.²

Under the "Unclaimed Property" clause, First Interstate surrenders funds to the state after a period without activity or communication. Once surrendered, the claim is presented to the state, not to the bank.²

The Fee Schedule charges $5 per imaged statement, $1 per imaged check, $25 per hour for research time and $25 per hour for checkbook reconciliation. An IRA transfer or direct rollover is $25, and processing a garnishment or levy against the account is $100.⁴