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#2079643 - 05/20/16 05:17 PM Certificate of Deposit of deceased account holder
Ohmyachinghead Offline
Junior Member
Joined: Sep 2015
Posts: 37
Oklahoma
When a CD holder is deceased and has a POD, should the POD redo the CD in their own name?

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Operations Compliance
#2079644 - 05/20/16 05:23 PM Re: Certificate of Deposit of deceased account holder Ohmyachinghead
Doug Hendrickson Offline
Power Poster
Doug Hendrickson
Joined: Oct 2009
Posts: 3,927
Yes.

We would issue a cashier's check to the POD once we have all of the required documentation and if the beneficiary wants to use the proceeds to invest in a CD it would be a new one in their name. It would also be up to an officer to decide the terms if the current ones are different from the original. This process also leaves a clear management/audit trail of the closing of the original CD and the proper disposition of the funds.

You shouldn't allow the POD to retain it in the deceased's name as you would then be reporting interest for a dead person.
_________________________
I hear and I forget. I see and I remember. I do and I understand.--Confucius

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#2079654 - 05/20/16 06:11 PM Re: Certificate of Deposit of deceased account holder Ohmyachinghead
Ohmyachinghead Offline
Junior Member
Joined: Sep 2015
Posts: 37
Oklahoma
Thank you!

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#2102877 - 10/13/16 05:44 PM Re: Certificate of Deposit of deceased account holder Ohmyachinghead
Ohmyachinghead Offline
Junior Member
Joined: Sep 2015
Posts: 37
Oklahoma
What if a Certificate of Deposit is joint and the deceased owner is listed first, therefore reporting under the deceased ss#?

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#2102935 - 10/13/16 08:25 PM Re: Certificate of Deposit of deceased account holder Ohmyachinghead
Elwood P. Dowd Offline
10K Club
Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
Solicit a certified SSN from the surviving owner. For 2016, report all of the interest paid prior to the date of death to the decedent and all of the interest paid after the date of death to the survivor. (Required, not a suggestion.) As for the time deposit itself, close it out and reissue it in the name of the survivor for the remaining term or allow him or her to cash it.

If you cannot get a certified SSN from the new owner, then simply remove the incorrect SSN. In the absence of a TIN for information reporting, impose backup withholding. They will come around. wink
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In this world you must be oh so smart or oh so pleasant. Well, for years I was smart. I recommend pleasant.

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#2102995 - 10/14/16 02:08 PM Re: Certificate of Deposit of deceased account holder Ohmyachinghead
Ohmyachinghead Offline
Junior Member
Joined: Sep 2015
Posts: 37
Oklahoma
Thanks Ken!

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