We were notified via or info@ email over the past weekend that one of our customers date of death was this past April 21st. We were notified by a person claiming to be his brother and he provided us with the account number. Our customer lived in AZ and we are a MN bank. He was inquiring how he would obtain funds (if any) in his brother's account. I confirmed the death by a two sentence obit online in the town he was last residing in (moves a lot and we are always chasing returned mail and address changes for him). Unfortunately, there have been 4-5 ATM withdrawals that took place after our customers DOD. I immediately closed the ATM card as stolen. He received annuity payments at the end of every month in addition to a small social security payment. Whomever had possession of the ATM had already drawn down the April annuity payment and half of the May payment when we were notified of the death. We had to return the current annuity payment which put the account significantly negative. We may have to return the April annuity as well if it is requested which will further the negative balance. I suspect the brother is the one in possession of the ATM card. They withdrawals were made at the same ATM as our customer had historically frequented. A few hours after I closed the ATM card, there were additional attempted withdrawals and balance inquiries.

I have looked up both the small estate affidavits for MN and AZ but I'm not certain which would apply. But I'm wondering ... If the affidavit is not submitted, do I even respond to this email inquiry? I realize it could be argued a decedent has no risk of a privacy violation but at the same time, why didn't he just call? They both were formerly local resident's of the area, only the decedent was a customer of ours though. It all gives me a strange feeling. I know the standard answer is contact legal counsel but that's really not an option. Was just looking for insight and opinion. Since the account is currently negative and most likely will go even more so, I have not responded yet to the email. Thoughts?

If your customer was a resident of AZ, then AZ small estate procedures would be applicable. You could respond to the request by suggesting that the requestor consult an attorney familiar with AZ laws for guidance on collecting a small estate. In the meantime, do your own research to ensure that any affidavit you ultimately receive is compliant. This is a more prudent approach than trying to walk a stranger through an unfamiliar state's process.

Do you have any shot at getting surveillance from the ATM withdrawals?

As you have nothing to deliver, you don't need a small estate affidavit. Your next task will be queued up when a personal representative is appointed and that person asks you to put the money from the ATM withdrawals back.

I'm anticipating the ATM dispute ... even though I suspect it's the brother that has the card and made the withdrawals ... so he'll end up with the money twice. But that is the burden of the financial institution. Win some, lose some. Since the account may potentially have a positive balance - and he did not claim to already be a personal representative - I took JacPCB's advice and replied with a condolence for his loss and to also please consult an attorney familiar with AZ laws for guidance on collecting an estate and proceed accordingly. That at least may give me a bit of time to try and get ATM footage (not holding my breath).

First, without someone approaching the bank and presenting a death certificate, how can you be sure he is dead.

Second, why was the annuity deposit returned? The bank doesn't have a dog in that hunt. The insurance company would have a claim against the estate and not the bank.

Private annuities don't fall under the same rules that federal government benefit payments due. With the federal benefits, you are restricted by regulation, and subject to reclamation. With the private annuity, if it's coming in via ACH, you should return them if they are received after you have knowledge of death, but there's nothing compelling you to return funds received before acquiring that knowledge. As Randy pointed out, that's between the insurance company paying the annuity and the estate (if the annuitant is dead).

And "knowledge" of death doesn't come from the phone call/email exchange you described unless there's more information that we haven't seen yet. On that aspect, I also agree with Randy.