Answer:
You are allowed, not required, to waive early withdrawal penalties on the death of the owner. Your bank could still choose to waive the penalties even if you allowed the personal representative to retitle the accounts in the name of the estate. The preferred practice is to have the estate close all of the decdent's accounts and reopen new accounts in the name of the estate; file maintenance is not the preferred way to reflect a true change in ownership.
First published on BankersOnline.com 8/31/09