What to do when a Greenwood account holder dies

With a transfer-on-death designation on file, DriveWealth may distribute the assets directly to the beneficiary. With none, the assets may be moved into an estate account, and DriveWealth follows the executor's instructions or a court order.¹

Issues Greenwood's deposit accounts and settles the deposit side of a claim, on its own clock²

Holds the brokerage assets and settles the investment side of a claim, on its own clock¹

The agreement says: "You or your appointed party, designee, or appointed individual agree to notify us promptly if any authorized signer or person with access to your Account dies."²

The estate must notify DriveWealth or Greenwood, as introducing firm, of the death in writing.¹

Greenwood may keep honoring items until it knows of the death and has had a reasonable opportunity to act. It "may pay on items drawn on or before the date of death for up to ten (10) days after that date," unless someone claiming an interest in the account orders a stop payment.²

A direct deposit later found to be payable to someone other than an owner is deducted and returned to the originator without prior notice. Social Security and pension payments made after the date of death are reclaimed from the balance this way.³

After 90 days with no owner-initiated activity the account becomes inactive, then dormant, and is then closed. The inactivity fee accrues in the meantime.³

Under the agreement's "Levies, Garnishments, and Other Legal Processes" clause, the accountholder is responsible for the expenses Greenwood incurs and must indemnify Greenwood if it keeps processing transactions before it receives proper court documents.²

The investment account is governed separately, by DriveWealth's Customer Account Agreement under New York law.¹