What to do when a Prosperity Bank account holder dies

Prosperity's deposit account agreement (Terms and Conditions of Your Account, section 26 in the Texas version and section 27 in the Oklahoma version) sets two limits, and both run against you until you act. The bank may continue to honor the decedent's checks, items, and instructions until it BOTH knows of the death AND has had a reasonable opportunity to act on that knowledge — so an unreported death means the account keeps operating normally. Separately, even after it knows, Prosperity may pay or certify checks that were drawn on or before the date of death for up to TEN (10) DAYS after the death, unless someone claiming an interest in the account orders a stop payment. That means notifying the bank does not by itself freeze outstanding checks. If checks are circulating that should not clear, an interested party (an heir, a POD beneficiary, or the executor) must place a stop-payment order. The customer's side of the same clause is an express promise to notify Prosperity promptly of the death.

Possibly, and this is the usual route for a modest Texas estate whose only asset is a bank account. Under Texas Estates Code chapter 205, an estate can be collected without appointing a personal representative if the decedent died WITHOUT a will, the value of the entire estate excluding the homestead and exempt property does not exceed $75,000, that value exceeds the known liabilities, at least 30 days have passed since the death, and no petition for a personal representative is pending or has been granted. The affidavit is sworn to before a notary (including by two disinterested witnesses) and filed with and APPROVED BY the probate court — Prosperity is presented with the court-approved affidavit, not one you write yourself. If the estate is over the limit, the decedent left a will, or the account is titled without a P.O.D. designation or survivorship, the banking center will require Letters Testamentary or Letters of Administration instead. Oklahoma accounts follow Oklahoma's own small-estate rules, which differ.

Prosperity Trust is the wealth management and trust services division of Prosperity Bank, and it is a different destination from the banking center. A deceased-account claim on an ordinary checking or savings account is handled by the banking center where the account was held (Prosperity publishes no central estate department and no downloadable estate form). But where Prosperity itself serves as trustee, executor, or agent, the file belongs to Prosperity Trust: it offers personal trust administration, living trust administration, testamentary trust management, estate settlement and executor services, special needs trusts, financial guardianships, farm and ranch property management, mineral and oil/gas interest management, and customized investment management through Prosperity Portfolios. Note that opening an account in a fiduciary capacity does NOT make Prosperity a trustee — the deposit agreement's Fiduciary Accounts clause says the bank is not responsible for a fiduciary's actions and takes on no duty to monitor or enforce the trust or the letters. Contact Prosperity Trust at trust@prosperitybankusa.com or call your nearest regional office: Houston 713-275-6510, Dallas-Ft. Worth 469-229-9305, Austin 512-329-7714, Lubbock 806-741-2177, Midland-Odessa 432-687-9109, Abilene 325-794-1049, Bryan-College Station 979-680-5553, Victoria 361-572-6555, Oklahoma City 405-951-9051.