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What Happens To A Cd In A Joint Account When One Owner Dies

hank
  |     |   110 posts since 2016

If there is a cd in a joint account and one owner dies, will the cu or bank then allow cashing out the cd without penalty?

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15


Answers
Ally6770
  |     |   4,292 posts since 2010
Most banks and credit union will allow this. But if there is an estate with debt you should check this out. They may be able to clawback. 
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topkapi56
  |     |   48 posts since 2011
From my own experience after my father passed away last year, the answer is yes (at least at his bank).  I assume that is not unusual.  I had no problem at all.
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2
paoli2
  |     |   2,641 posts since 2011
I called all our banks and credit unions and asked about this and was told as long as the POD/beneficiary provides them with a copy of the death certificate and proof of who they are, the account is turned over to that person and they can do what they want with the funds.  There is no penalty for doing this at the death of the original owner from what I was advised.
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2
Ally6770
  |     |   4,292 posts since 2010
Most banks and credit unions will also retitle the CD's for those that want to continue them if there is a good interest rate. They did that for my children with the Cd's that I set up for them to inherit from my husband as beneficiaries. Remember that if the owner that has passed owes money the companies and or people can come after part of that money and take you to court to get paid even if the survivor has taken the money. It has happened when I worked at the bank and also to my sister-in-laws friend. 
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