No, we are not aware of any law or regulation that requires a deceased owner of a joint account to be removed from the account within a specific timeframe. However, we recommend removing the deceased customer from the joint account as soon as you have confirmation of the death.

Under Illinois law, when a joint owner dies, joint account funds automatically pass to the surviving joint owner. Assuming your bank’s account agreement establishes a joint account with rights of survivorship, on confirmation of the death (such as a copy of a death certificate), you should remove the deceased owner from the account. After doing this, you should list the surviving owner as the account holder for tax reporting purposes to avoid improperly reporting interest to the IRS under the decedent’s SSN.

For resources related to our guidance, please see:

• Joint Tenancy Act, 765 ILCS 1005/2(a) (“When a deposit in any bank or trust company transacting business in this State has been made or shall hereafter be made in the names of 2 or more persons payable to them when the account is opened or thereafter, the deposit or any part thereof or any interest or dividend thereon may be paid to any one of those persons whether the other or others be living or not, and when an agreement permitting such payment is signed by all those persons at the time the account is opened or thereafter the receipt or acquittance of the person so paid shall be valid and sufficient discharge from all parties to the bank for any payments so made.”)

• IRS Publication 550, Joint Accounts (“If two or more persons hold property (such as a savings account, bond, or stock) as joint tenants, tenants by the entirety, or tenants in common, each person’s share of any interest or dividends from the property is determined by local law.”)

• IRS Publication 550, TIN for Joint Account (“If the funds in a joint account belong to one person, list that person's name first on the account and give that person's TIN to the payer. (For information on who owns the funds in a joint account, see Joint accounts , later.) If the joint account contains combined funds, give the TIN of the person whose name is listed first on the account. This is because only one name and TIN can be shown on Form 1099.”)