Topic: Joint Accounts
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The executor for a customer’s estate contacted us to request account records. The customer’s account has a surviving joint owner with a right of survivorship. Can we provide account records to the executor?
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Yes, the executor may access bank account records up to the date of death — but the executor would not have any right to information about the account after the date of death. The federal privacy regulations permit banks to disclose account information to “persons holding a legal or beneficial interest relating to the consumer”…
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A husband and wife passed away simultaneously in a house fire. They have a joint deposit account with a right of survivorship, but each has a separate executor. How do we disburse the funds in the account?
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Under Illinois law, if two people with joint tenancy in a bank account die simultaneously, the account “shall be distributed 1/2 as if one had survived and 1/2 as if the other had survived.” For resources related to our guidance, please see: Illinois Simultaneous Deaths Statute, 755 ILCS 5/3-1(c) (“If 2 persons hold title to…
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We have two deposit customers who recently died. The first customer’s estate is represented by an executor. Can we permit the executor to deposit a check made out to the decedent into an estate account? The second customer was a joint accountholder with his wife. Can the wife deposit a check made out to the decedent into the joint account?
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Yes, an executor has the authority to endorse and deposit checks made out to the decedent into the estate’s account. In the second situation, however, we do not recommend permitting the wife to deposit the check into the account (which is no longer a joint account), unless fewer than ten days have passed since your…
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A husband and wife jointly lease a safe deposit box at our bank. They are getting a divorce. Can the husband designate his attorney to open the box with the wife so that the spouses do not have to both be present when the box is opened? The wife has not objected to this arrangement.
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Although both co-lessors appear to have consented to this arrangement, you still should review the underlying safe deposit box agreement to determine whether there are any provisions that might be relevant in this situation (for example, whether the agreement requires that all lessees be present when opening the safe deposit box). We also should note…
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Are there any risks to permitting a child under the age of five, who cannot sign his or her own name, as an owner on a savings account? We also have parents sign as co-owners.
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The Illinois Banking Act permits banks to establish deposit accounts for minors with the same terms as if the minor is an adult. However, we do not recommend establishing an individual deposit account for a minor who is too young to physically sign the account agreement. Regarding joint accounts with parents, we note that simply adding…
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When converting a joint CD to a joint money market account, do we need to obtain signatures from both account holders in order to create a joint tenancy with a right of survivorship? If so, is there an exception to that rule when the conversion from a CD to a money market account occurred only because the original offering bank was purchased by another bank?
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Yes, both signatures are required in order to create a joint money market account with a right of survivorship. Under the Illinois Joint Tenancy Act, a joint deposit account with rights of survivorship requires a signed written agreement by all account owners. There is no exception to this rule for when accounts are created or…
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At what age should we permit minors to establish their own accounts? If the minor is too young to sign the account agreement, what type of account can we offer them? Can the minor be added to an adult’s account?
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The Illinois Banking Act permits banks to establish deposit accounts for minors with the same terms as if the minor is an adult. However, we do not recommend establishing an individual deposit account for a minor who is too young to physically sign the account agreement. If a minor is too young to physically sign…
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When two people jointly own a CD, do both of them need to sign the CD renewal?
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We believe it is permissible for one owner to sign the CD’s renewal, provided doing so would not be inconsistent with the terms of the original CD agreement or any collateral agreement you may have defining the scope of each owner’s authority.
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A husband and wife hold a joint account. The couple’s daughter wants to be added as a third joint accountholder. The daughter is in the process of obtaining guardianship for the father and provided us with a letter from the father’s doctor stating that he is mentally incompetent (and that the mother is close to being incompetent as well). Can we add the daughter to the account? Our bank counsel said this would be permissible, but we wanted to confirm with you.
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We recommend that you require the daughter to obtain a court order appointing her as guardian for one or both of her parents before adding her as a joint accountholder or authorized signer on the account. A temporary guardianship can be obtained relatively quickly, particularly if there are emergency circumstances that require the daughter to…