What to do when a KeyBank account holder dies

For an account in one name with no payable-on-death beneficiary, the executor or administrator presents Letters Testamentary or Letters of Administration issued by the court.¹

Offered in some states. The beneficiary has no present, vested interest until the death, and the right is subject to set-off and any security interest or claim. On a joint account the beneficiary "will not receive any funds unless all Account owners are deceased."²

"If no beneficiary form is available, we will presume that no designation of POD exists." The account then falls to the estate.²

The named beneficiary presents ID and the death certificate. With proper documentation, a payable-on-death account can often be settled in a single branch visit.¹

Joint personal accounts are owned as joint tenants with rights of survivorship. The balance passes to the surviving owners, subject to set-off and any security interest or claim, and they present the death certificate to remove the deceased person's name.²

KeyBank "may also honor checks, orders, or requests for withdrawals from the personal representative or legal successor of the deceased owner," not only from the surviving owner.²

On an "in trust for" account the named persons "have no right to receive funds in the Account until all owners are deceased."²

KeyBank may rely on the genuineness of documents a trustee or custodian delivers to it.²

Death does not end KeyBank's authority to pay checks, accept deposits or collect deposited items until it receives written notice, so a phone call alone does not freeze the account.²

KeyBank's settlement FAQ says family or next of kin generally notify the bank, and that it is best to notify KeyBank as soon as possible so debits and credits that should cease are stopped.¹

"Even after we receive notice, we can pay checks drawn by you before your death or declared incompetence for up to ten (10) days or any longer period permitted under applicable law."²

Checks and electronic deposits payable to a deceased joint owner, such as Social Security, must be returned to the issuer and may not be used or cashed by the surviving owners. A survivor who spends one stays liable for it, and KeyBank may charge the account and remit it to the issuer.²

KeyBank may withdraw funds from any of the deceased person's accounts, "even if the Account(s) we withdraw money from is a joint Account and the debt we apply it to is owed by only one of you," and apply them to debts owed to KeyBank other than a personal credit card balance.²

KeyBank may place a hold pending its right of set-off, and has a separate right of set-off against any federal direct deposit the account was not entitled to.²

At settlement KeyBank returns government deposits received after the date on the death certificate, returns ACH payments, stops automatic bill pay deductions and automatic funds transfers, and revokes any overdraft protections.^{1, 3}

KeyBank says the customer's total relationship, account titling and obligations affect how accounts are settled, and it prioritizes returning government deposits received after the date on the death certificate.¹

KeyBank validates your authority before it discloses the deceased person's financial information to you.^{1, 3}

"KeyBank cannot accept a will as proof of fiduciary authority to close accounts." Documents "must be executed or issued within the appropriate time allowed by state law."³

"Hiring an attorney is not required to settle a loved one's KeyBank accounts."¹

A checking account is inactive after 3 consecutive months with no customer-initiated activity, and a savings account after 12. Once state law requires the balance to go to a state agency, "you must file a claim with the state agency to recover the funds."²

For an automatically renewing time account, the activity clock starts when the initial term expires, and a new term is not itself activity.²