If a customer who has a deposit account with a POD dies, can the monthly payments on the deceased customer's loan be set off against the deposit account or does that money cease to belong to the deceased customer and now belongs to the person named as POD?

Thanks in advance.

You are going to have to look at State law.

This is a state law issue so consult with an attorney.

In most states, including my own, immediately upon death that money belongs to the beneficiary of the totten trust. Therefore, that money should NOT be used to offset the deceased's loan as it no longer belongs to the deceased. You would owe a liability to the beneficiary or estate of the deceased based on how the account was setup/opened.

Texas is the opposite

Which is exactly why this is a state law issue