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What Happens If My Dad Passes And He Has A Cd Without Beneficiary On It?

highrate
  |     |   46 posts since 2016

my dad has some cd's without beneficiaries on them.  I am the executor of the estate.  what will happen if he passes?  Do I  just present the death certificate and they I can do what I need to do or pay for with the funds without penalty?

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7


Answers
topkapi56
  |     |   48 posts since 2011
That CD would go into the estate.  Then you as executor would enter his will into probate.  That money would then be part of whatever bequeaths are made as outlined in the will.  Certainly, you can present a death certificate to get the ball rolling, but that money will still become part of the estate and will have to be dispersed as the will dictates.

If he had named a beneficiary, the money would have gone directly to that person.  (Even if the will states something else, the named beneficiary usually gets that money and it does not have to go through probate.)
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hank
  |     |   110 posts since 2016
how do you get the bank to recognize it is part of an estate unless you provide a death certificate
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Maecl
  |     |   149 posts since 2010
Several years ago I went to my parents bank with a copy of my POA.  I don't know if you can do this, but they told me I was better off adding my name to all the account they had at the bank.  Reason they gave was the POA ends with their passing.  The money would not be readily available to pay final bills.  They had seen that issue with their clients.
Your circumstances may be different.  It has worked for me.  I was able to open an account at Ally with 3 names with the ability to move from their checking at the local bank to Ally.
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hank
  |     |   110 posts since 2016
Do you mean add your name as POA or do you mean as a joint owner.  My father has accounts at far away credit unions that I got him involved with.  One of them told me I have to go to a branch with the poa which is not feasible
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Maecl
  |     |   149 posts since 2010
I am POA for my parents.  The bank they had for checking, savings and CD is local.  I went with my father to give them a copy of my POA.  They said it was to my advantage to add myself as a third person on their accounts.  That way I would still have their funds available when they passed to use for final expenses.  POA ends with death.

Both my parents have dementia and are in assisted living.  As an only child I don't have the complications others have with family.  The account I opened at Ally has enabled me to accumulate cash at a higher rate than I was able to get locally.  Now I just hope at age 93 & 94 they won't outlive their money.  If that happens next step is Medicaid in a nursing home that may not be one of my choice.
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hank
  |     |   110 posts since 2016
were you able to put your parent's names on the account at Ally?  How did you do that?  I thought it would be good to have some of my dad's funds at Ally but I'm not sure how to do it
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Ally6770
  |     |   4,292 posts since 2010
Most states have updated their POA regulations. Many will not recognize the old POA's. Check with your bank or credit unions. 
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Maecl
  |     |   149 posts since 2010
I opened the account online with  my father as the primary.  My mother was 2nd and I 3rd.
It was 3 years ago so my I'm not clear on details.  I linked the Ally account to their local checking.  I did have the opening signature cards sent to their house.
I already had an account at Ally.  I created a separate log in for my parents account.
Now when I login to my accounts I can see their savings.  When I want to transfer money from their local banks checking to Ally I use their login.  From that login I only see their Ally account.
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3
paoli2
  |     |   2,641 posts since 2011
How can "Payable Upon Death" mean it ends with the death of the CD owners.  Payable Upon Death has always been explained to me as the POA (Beneficiary) gets control of the accounts and money upon showing proof (death certificate) of death of the CD owners and their name as POA.  If it no longer means payable upon death then they have to advise their customers so they can do what is needed to make sure the money goes to the beneficiary upon their death.  I have never been told it was changed from what I always understood it to be.
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Ricochet
  |     |   522 posts since 2010
I think POA only applies while Principles are alive. I think it  ends with death, then Wills and Trusts have priority after co-owners and beneficiaries
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paoli2
  |     |   2,641 posts since 2011
No! No!  You are all getting this wrong!  I have gotten these CDs with POAs for over 50 years and the basic idea of using them is so that they WON't have to be even mentioned in the Will.  I was told the POA takes precedent over anything we put in a Will and it helps us avoid that nasty word "Probate".  I will be calling my institutions this week to see if anything changed while I was involved in other important matters but if you are right, then why bother with a POA?  I would have to redo my Will if what you state is correct.  Why is Ken being so quiet about this? I think he would certainly understand what I am referring to.  You are completely changing the meaning of "PAYABLE ON DEATH"!
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paoli2
  |     |   2,641 posts since 2011
Ok, Ken can take a break.  I just google "What does Payable on Death mean on a POA CD?  and I just had a slew of articles saying exactly what I was told by the banks.  The POA hands them the death certificate and he/she takes over the account, no Will needed, no Probate!  Nothing has changed except what is being posted on DA.  So I think it is important to make sure we are giving  correct info to the newbies peaking in at group or they may never become "oldbies" like the rest of us.  Happy whatever holiday this is.  I am not a celebrating type of person and think fun is overrated.  I would rather be working while I still can. 
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hank
  |     |   110 posts since 2016
power of attorney does not need to present the death certificate to the bank or cu.  The POD beneficiary can do it and then take control of the account. POA ceases to be in force when the principal dies.
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paoli2
  |     |   2,641 posts since 2011
Ok.  I'm caught.  Must be too much not celebrating but I got the POD and POA mixed up!  POD is what I use on the CDs not POA.  They are entirely different.  You are correct Hank.  I meant to write the POD hands them the death certificate since they are the actual beneficiary of the CD.  I use the POA but it is an entirely different beast.  Sorry for the confusion. 
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