Latest Compliance - Deceased Customer Topics

Deposit Checks Payable to Deceased in IOLTA?

02/17/2019

Can an attorney who is appointed personal rep of a deceased individual, deposit checks payable to the deceased (not the estate) into their IOLTA account?

"Payable on Death" Acct. Bypass Beneficiary?

09/16/2018

May a "Payable on Death" account bypass payment to the beneficiary and go straight to the estate account if the Executor requests this?

Deceased Corporate CD Signer-Adding Signers

02/04/2018

A corporate CD signer passed away. The daughter and son would like to be added to said CD. On the State of Florida's Division of Corporations web site, both son and daughter are registered for the corporation. The daughter shows as a registered agent, and the son as officer/director plus there is a third person who is also as officer/director. Can we add the daughter and son as signers on CD? Do we have to add the third person as well, or does a court document and/or trust need to be presented showing son/daughter/3rd person as either owners/trustees before adding the names?

John Doe Life Estate/John Doe Life Tenant Checks

01/28/2018

We seem to be seeing more and more checks made payable to 'John Doe Life Estate' or 'John Doe, Life Tenant'. Could you explain what that means to us when John Doe wants to negotiate that check? We had a customer today with a check written like this and she explained that the reason her's said that is because when she passes, the checks from the oil and gas company will continue to go to her children at the time of her death. Any further explanation you could provide would be super!

Currency In Deceased Person's​ ​Safe Deposit Box

12/03/2017

I have read several scenarios on currency in a deceased person​'​s​ ​safe deposit box. We have one that I am not sure will meet the definition of​ "transaction" Case is single ​renter deceased, box drilled upon non​-payment of rent. ​$18,000 in currency was in the box, that along with other​ items was verified under dual control and put into safe keeping. Later​,​ staff​ started tracking down the estate or likely survivor. We found ​his ​spouse, and​ she had no idea he had the box. Upon proper documentation of her right to​ have box contents, she was given the currency, and no one at the branch considered that a CTR might be required. Since the dollar amount was never​ placed in a bank account of any kind, there was no transaction that the CTR​ software could see, so it did not appear there, or in BSA AML monitoring​ software. It is well past time to file​. Do we need to start a ​b​ack​-​filing​ request to FinC​EN​?

Deceased IRA Owner- beneficiary Distribution Form?

11/26/2017

When an IRA owner dies are you required to open a beneficiary IRA and/or complete a beneficiary distribution form when paying out funds to the beneficiary?

Death Notification Service?

11/19/2017

Is there a service out there that does the search for deceased persons and notifies the bank of the customer's passing? I can't imagine BoA or other big banks reading the obituaries each day to look for their deceased customers. Is there a better way?

IRA w/o Beneficiary-Personal Rep of Estate & TIN

10/29/2017

I have a customer who passed away in 2014 with an IRA and no beneficiary listed. The customer was over 70 1/2 and no known RMD was taken in 2014 thru 2017 . The daughter came in with probate court papers appointing her as Personal Rep of the Estate. Am I correct thinking that the daughter needs a TIN for the Estate? Distribution from the current IRA (under deceased SSN) is coded as Death and Contribution in to an Estate IRA under the assigned TIN is coded as Transfer? Once this is completed do I take all of the RMD for 2014 thru 2017 from the Estate IRA? Also if the daughter wants to close the estate IRA, do I code this as a death distribution from the estate IRA?

What Happens When Customer Passes-LLC Using EIN #

10/22/2017

We have a single-member LLC using an EIN number. The member is asking what happens to the account when he passes away, will it go to his estate or does it need to be in his business papers to show where is goes? The account is held in Iowa and they run the business out of Minnesota.

POD Account: Transferring Funds to Estate

01/31/2016

A member has passed, and her account was a POD account, with 3 beneficiaries listed. The executor of her estate has come in, asking to transfer the funds to the estate. Do we pay out the beneficiaries, or do we follow the executor, and transfer funds to the estate account?