We had someone complain about how we handled her mother's account. Mother passed away 4/1/19. She received a Social Security deposit 4/3/19, after her DOD. We were not informed of mother's death until we received ACH notification on 4/30. At that time we restricted the account and returned the SS deposit that was received 4/3, and also returned two ACH debits for utility payments that were memo posted to the account that day, per our procedures.

Daughter is extremely upset that no one notified her that the account was frozen. There was no one else on the account, so we would not have known who to notify. She feels we should have sent notice to the deceased's address saying the account was frozen and the social security deposit was being returned, as well as the two ACH debits.

We do not typically notify anyone when social security is returned, or when we return items that are memo posted. Are we required to send notice to the customer?

Is there something that other banks do in this situation that we are missing? Thanks.

The only person that can act on the account following the sole owner's death is the executor of the estate. It would be inappropriate to send any notice to the decedent's address as you have no way of knowing who would receive such a notice or if they would be authorized to read it.

Unfortunately, the family did not have an estate plan in place to manage expenses following the customer's passing. This is not the bank's issue.

Rule of thumb, never change your procedures just because someone is upset.

Agreed. You did everything by the book.

Curious- was this a complaint to your management, or to your regulator?

The daughter was likely more in grief than upset at the bank, but the bank is easier to yell at. There are rules which protect the estate which exists whether the daughter likes it or not. It wasn't her money and the bank was left in the dark. In these cases you follow prescribed rules that are pretty much set in stone, similar to a headstone you might say on a Friday afternoon.