What to do when a Live Oak Bank account holder dies

The named beneficiary collects on proof of the owner's death, provided the beneficiary was living at that date.¹

Payable-on-death and joint-survivorship accounts are released once Live Oak verifies the death certificate and the claimant's identity.²

The balance belongs to the surviving owners as joint tenants with right of survivorship, and the survivor keeps access without a claim.¹

With no beneficiary and no joint owner, the account is an estate asset. It is paid on Letters Testamentary, Letters of Administration, or a small estate affidavit that qualifies under the governing state's law, and waits on the probate court that issues the Letters.²

Live Oak's disclosure says the law permits, and sometimes requires, waiver of the early withdrawal penalty on the death or incompetence of an owner.¹

Live Oak may close the account and apply the penalty to the entire balance when only part of a CD is taken early.²

The account owner agrees to tell the bank promptly if any person with a right to withdraw funds dies or is adjudicated incompetent.¹

Live Oak may continue to honor the deceased person's items and instructions until it both knows of the death and has had a reasonable opportunity to act on that knowledge.¹

Live Oak 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.¹

Scheduled ACH transfers set up by the deceased person keep running until the account is restricted.²

Live Oak may place an administrative hold, refusing payment or withdrawal, when the account becomes subject to a claim adverse to the owner's interest, to others claiming as survivors or beneficiaries, or arising by operation of law.¹

The hold can last as long as Live Oak reasonably believes necessary for a legal proceeding to resolve the claim.¹

Live Oak may deduct from the account, without prior notice, any amount it must reimburse the federal government for a benefit payment that was direct-deposited, so Social Security payments issued after the date of death can be taken back.¹

Live Oak does not accept third-party checks, so a check payable to the deceased person cannot be endorsed over and deposited into another Live Oak account.²

Live Oak charges a monthly dormant account fee beginning in the 25th month with no withdrawals, deposits, Customer Success contact or online-banking log-in, and closes an account whose balance falls below $10.01. Funds left long enough are surrendered to the state as unclaimed property.²