Username Post: Banks/Credit Unions        (Topic#1582735)
Posts: 2040
Joined: 02-23-06

Does anyone know how banks and credit unions are supposed to handle member accounts after a death? For example a member has an account with the institution that includes checking, savings, and a loan(s). They have a beneficiary(or multiple ones) listed. Is the institution supposed to turn over the funds or can they use them to fulfill the loan(s)? It also doesn't make sense that they know about a member's death and won't let any beneficiaries take out money yet they are still tacking on late fees because the loans havent been paid since the death of the account holder. Then they (the institution) just swept 100% of the funds from the account to the loans to bring them current...well actually ahead....the accounts are now not due for a few months in the just doesn't make sense.

Posts: 17797
Joined: 05-18-07
In response to ihacodb

You need to find out what the terms of the loan said. I believe they can do that in most cases. You have to have a DC and a visit with a probate judge in NM before you get the money out of banking accts and credit union accts in NM. That is why I am now on my mom's checking acct, I won't have to go through any of that when she passes, not that there's anything in her acct other than her monthly SS check.

Posts: 14611
Joined: 05-12-03
In response to NMlady

Some of this depends on what State you're in.

You say "beneficiary." Are the accounts designated "pay on death," a "beneficiary" listed in a will? Are the accounts held jointly? There's a HUGE difference.

Is it being probated through the Courts?

In summary, you won't get an answer here.
Talk to a probate attorney in your state.

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