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Question & Answer
Question: We had a customer that opened a burial reserve account in an agreement with a local funeral director. After the customer died, the funeral director came in with the death certificate and the bill, but the funeral costs less than the balance in the account. What do we do about the money left in the account?
Answer: If there is a funeral home or director named on the CD or account, the entire amount should go into a check payable to that funeral home "... for the benefit of ..." the named decedent. Any reputable funeral home will then handle the excess funds by turning them over to the family-usually to the person responsible for the funeral bill.
If there is no funeral home or director named, you should first pay the total funeral bill by means of an official bank check.
Then, if there is an estate, the rest of the funds should go in an official check payable to the estate of the decedent. If there is no estate, in most states (check with your state department of banking!!) the remainder can go to the survivor(s), usually in descending rank-first to the spouse; if no spouse, then to the child, (or equally to the children); if none, then to the father and/or mother, (both, if they both survive); and finally, if none of the aforementioned relationships exist, the funds can go to sister(s) and/or brother(s) (again, equally.)
The check should read: "Joe Recentlygone, Deceased; Stella Stillaround, Survivor". Stella should endorse that entire phrase on the back of the check, and then endorse it again personally for negotiation.
It is important to check your state law on the limits of amounts before an administrator has to be appointed and an estate set up. We've learned of states with a $1,500 limit, up to some with a $5,000 limit.
Copyright © 1997 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 7, No. 6, 5/97
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