Branch Closing - Irrevocable Burial Accounts

Posted By: Kompliance

Branch Closing - Irrevocable Burial Accounts - 02/14/17 06:34 PM

We are closing a branch and transferring the accounts to another branch a couple of miles away.

We have a customer who has an irrevocable burial reserve account that does not want to transfer branches, and wants to move his account to a different institution that is staying in the community where our branch is closing.

Under PA state law, does anyone know if we can allow this because of the circumstances? I can't find anything about other reasons to release these funds besides the death of the owner. Any thoughts or know of any guidance out there?
Posted By: dottiec

Re: Branch Closing - Irrevocable Burial Accounts - 02/14/17 08:30 PM

It is called an irrevocable account for a reason.

If the account was set up because the person is on Medicaid, your contract is required to have a clause allowing it to be transferred if the customer moves to another state.