What to do when a Prosperity Bank account holder dies

Under Prosperity's Texas agreement, ownership of a single-party account without a P.O.D. designation passes as part of the owner's estate under the will or by intestacy.¹

Under the Texas agreement, a single-party account with a P.O.D. designation passes to the P.O.D. beneficiaries and is not part of the estate. A survivorship account with a P.O.D. designation passes to them on the death of the last surviving party.¹

Under the Texas agreement, ownership of a trust account passes to the beneficiary on the death of the last surviving trustee, and the account is not part of the trustee's estate.¹

Under the Oklahoma agreement, a revocable trust or pay-on-death account is payable on the last owner's death to the surviving primary beneficiaries in equal shares, or to the living contingent beneficiaries if the sole primary beneficiary has died.²

If no beneficiary of an Oklahoma revocable trust or pay-on-death account is living, the account is payable to the estate of the last surviving owner.²

Under the Texas agreement, the decedent's ownership of a multiple-party account with right of survivorship passes to the surviving parties.¹

Under Prosperity's Oklahoma agreement, the balance of a joint account with survivorship belongs to the surviving owners.²

Under the Texas agreement, the decedent's ownership of a multiple-party account without right of survivorship passes as part of the estate, in proportion to net contributions.¹

Executors, administrators and conservators acting "under court orders" may open and maintain an account. Prosperity is not responsible for a fiduciary's actions, including misuse of funds, and takes on no duty to monitor or enforce the terms of the trust or letters.^{1, 2, 3}

Under the Texas agreement, the convenience signer does not own the account. On the death of the last surviving party, the account passes as part of that party's estate.¹

Prosperity's account agreement says: "You agree to notify us promptly if any person with a right to withdraw funds from your account(s) dies."^{1, 2, 3}

Prosperity may continue to honor the decedent's checks, items and instructions until it knows of the death and has had a reasonable opportunity to act on that knowledge.^{1, 2, 3}

Prosperity may pay or certify checks drawn on or before the date of death for up to ten days after the death "unless ordered to stop payment by someone claiming an interest in the account".^{1, 2, 3}

On a Texas convenience account, Prosperity may pay funds to a convenience signer before it receives notice of the death.¹

If Prosperity must reimburse the federal government for a directly deposited benefit payment, it may deduct that amount from the account or any other account held with Prosperity, without prior notice and at any time, except as prohibited by law.^{1, 2, 3}

Prosperity may set off account funds against a due and payable debt owed to it. It may not where the account is an IRA or similar tax-deferred account, or where the debtor's right of withdrawal arises only in a representative capacity.^{1, 2, 3}