What to do when a Santander account holder dies

All owners of a joint account are joint tenants with right of survivorship. On a joint owner's death the funds belong to the surviving owner, and after the last owner dies that owner's personal representative may withdraw them.¹

Funds in a joint account can be paid to or on the order of any owner, even if that owner is not alive when the payment is made.¹

A joint account with right of survivorship is not part of the estate process. Santander updates the account title to the surviving owners once it has the death certificate and an updated signature card.²

On an informal trust (POD/ITF) account, a beneficiary asks Santander to distribute the balance after the last surviving trustee dies. Beneficiaries present in a branch are each paid an equal share; otherwise Santander writes one check payable to all beneficiaries as tenants in common.¹

Santander is not obligated to notify beneficiaries of a trustee's death or of the account. If every beneficiary died before the last trustee, the balance is paid to the legal representative of that trustee's estate.¹

The beneficiaries of a POD or ITF account must provide the death certificate to have the account closed and the funds disbursed to them directly.²

On a joint account with beneficiaries, the surviving owners inherit the account, and the beneficiary designation comes into play only after the last owner's death.²

An individually owned account is part of the estate process. The formal probate or small estate process generally determines when it is closed, and the person authorized to handle the estate presents the state-specific documents establishing their authority.²

A formal trust account is not part of the estate process. Successor trustees may ask Santander to update or close the trust account and to disburse the funds in the name of the trust.²

Santander's guide says that if a UTMA custodian dies without having designated a successor "and the minor has attained the age of 14 years or more, the minor may designate an adult member of the minor's family, the guardian of the minor's estate, or a trust company as successor custodian."²

A sole proprietor business account, which may include a single-member LLC depending on state law, is part of the estate process and is handled the same way as an individually owned account.²

For multi-member LLCs, corporations, partnerships and other business entities, Santander generally needs more information about the current owners or managers and the status of the business to decide whether the estate's representative may act for it.²

Taxation documents are required for any maintenance on accounts opened in Santander's New Jersey branches or owned by a New Jersey resident at death. Santander places a 50% date-of-death balance hold on individually or jointly owned accounts at notification until it receives them.²

Accounts at the Webster Bank division of Santander Bank, N.A.³

Accounts at Openbank, a division of Santander Bank, N.A., reached through the Openbank App³

Investment accounts with Santander Investment Services, a division of Santander Securities LLC⁴

Once notified, Santander reviews the customer's banking relationship and takes action to help protect the customer's assets with the bank, then works with you or the appropriate representative on what each account needs.²

If federal benefit payments such as Social Security were paid into the account, it is subject to a reclamation review for benefits paid after the date of death. Those funds may have to be returned to the agency before any funds are disbursed or the accounts closed.²

On a single-owner account with named beneficiaries, funds are payable to those beneficiaries. If probate documents are presented, checks are payable to the "Estate of" the deceased customer, unless the court directs otherwise in the probate documents.²

If small estate documents are presented, checks are often issued in the name of the affiant or claimant.²

Santander's guide says a power of attorney "is valid only during the principal's lifetime" and that "The power to act ends with the account principal's death."²

If applicable state law requires additional acts or documents, Santander does not release any funds in the account until those requirements are satisfied.¹

If an owner owes Santander or its affiliates money that is due, Santander can use money from any of the owner's accounts to pay the debt without notice in advance, and says how much was taken when it debits the account.¹

Beneficiaries can access account information only after the death of the account owner or owners, by providing the necessary documentation.⁵

If no beneficiary claims the funds in an informal trust account, the funds are deemed abandoned and escheated to the state.¹

Webster Bank is now a division of Santander Bank, N.A. For now, Webster Bank branches cannot help with accounts based at Santander, and Santander customers use Santander branches for those accounts.³