What to do when a Ledyard Bank account holder dies

With no payable-on-death beneficiary, joint owner or trust, the estate representative presents Letters Testamentary or Letters of Administration, so the account waits on the probate appointment.¹

The surviving owners present a certified death certificate and photo ID. The balance belongs to the survivors, subject to any prior pledge Ledyard agreed to.¹

On a joint account without survivorship (tenants in common), the deceased owner's share passes through the estate, not to the co-owner.¹

A payable-on-death beneficiary cannot withdraw unless all persons who created the account have died, at least 90 days have passed since the death of the last surviving owner, and the beneficiary is then living. Two or more surviving beneficiaries take equal shares, without right of survivorship.²

On a Vermont account, the beneficiary also cannot withdraw if, within the 90 days, Ledyard has been served with process by the account holder's personal representative or with a probate court order prohibiting payment.²

Trusts Ledyard holds as corporate trustee or co-trustee are administered in-house under the trust instrument and do not go through the deceased-account process.¹

On a Vermont account, a joint fiduciary designated under a Declaration of Intent could transact during the owner's life but has no ownership or survivorship right at death, unless the account agreement gave one.²

The designated beneficiary presents a certified death certificate and photo ID. Distribution options depend on the type of beneficiary.¹

On a Vermont "Revocable Trust Only" account, at the death of the surviving trustee the deposit and interest may be paid to the person for whom the deposit was made, or to that person's estate.²

Accounts and trusts Ledyard holds as corporate trustee or co-trustee¹

Investment assets held alongside a Ledyard relationship, under its own beneficiary and claim paperwork¹

The bank must be notified promptly when any person with a right to withdraw funds from the account dies.²

Ledyard may keep honoring 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

Even after notice, Ledyard may pay or certify checks drawn on or before the date of death for up to 10 days after the death, unless someone claiming an interest in the account orders it to stop payment.²

A stop-payment order must precisely identify the item's number, date and amount and the payee, because the orders are handled by computer. A written order is effective for six months.²

The same 10-day rule applies to business accounts.³

Ledyard has separate New Hampshire and Vermont ownership rules. Which set governs depends on the state of the branch where the account is located, not on where the beneficiary lives.²

Ledyard may refuse payment or withdrawal while a claim adverse to the owner, to survivors or beneficiaries, or arising by operation of law is pending.²

The hold lasts as long as Ledyard reasonably believes necessary for a legal proceeding to decide the claim, or until it receives satisfactory evidence that the dispute is resolved.²