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#2201480 - 12/26/18 07:04 PM Rights of Set Off - Deceased Customer w/POD
Likes to Comply Offline
Diamond Poster
Joined: Nov 2008
Posts: 1,055
In the mountains
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.
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#2201483 - 12/26/18 07:30 PM Re: Rights of Set Off - Deceased Customer w/POD Likes to Comply
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 79,235
Galveston, TX
You are going to have to look at State law.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2201535 - 12/27/18 06:24 PM Re: Rights of Set Off - Deceased Customer w/POD Likes to Comply
praBSA Offline
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Joined: Aug 2018
Posts: 334
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.

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#2201551 - 12/27/18 07:06 PM Re: Rights of Set Off - Deceased Customer w/POD Likes to Comply
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 79,235
Galveston, TX
Texas is the opposite smile
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2201571 - 12/27/18 08:28 PM Re: Rights of Set Off - Deceased Customer w/POD Likes to Comply
praBSA Offline
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Joined: Aug 2018
Posts: 334
Which is exactly why this is a state law issue smile

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