Because this situation may involve litigation risks, among other risks, we do not recommend paying the account to the accountholder’s relative without additional documentation. We are aware of at least one Illinois court holding that when a payment is made to a person other than the depositor, the bank acts at its peril and would be liable to the depositor (in this case, the accountholder’s estate) if that person’s claim was invalid. Because the relative does not hold any ownership interest in the account, the bank could be liable to the accountholder’s estate for any payments made to the relative. We do not recommend paying out the account unless you would under your customary procedures — for example, by paying the account funds as instructed by a small estate affidavit or as instructed by an individual representing the accountholder’s estate (i.e., an executor or administrator).

In other words, to directly answer your question, we recommend providing the inquiring relative with a description of your customary procedures for closing an account of a deceased customer.

For resources related to our guidance, please see:

• In re Estate of Muhammad, 165 Ill.App.3d 890, 893 (1st Dist. 1987) (“In making payment to a person other than the depositor, the bank acts at its peril and is liable to the depositor if the claim is not valid.”)