My parents had a joint CD account at one point. When my dad passed away this year, found out that the CD account was in his name only. The original CD was with a bank that was bought out by another bank, and that bank in turn got bought out by another bank. We don't know if along the way, whomever input information, just dropped my mother's name or if my dad had something to do with it. Question is, what will happen to the account now? By the way, the CD account was always tied to a checking account and the interest from the CD would go automatically into the checking and my mother's name is on the checking account and always has been. I've been told by others that the account would be frozen to the bank will take the money or the government. Do not know what to do and don't care to ask the bank or let them know my father is deceased as they will take action either way.

Just to be clear - your mother is still alive, correct?

If the CD is listed in your father's name only, then upon his death the CD is transferred to whomever is named as the beneficiary on the account. If there is no beneficiary named on the account, then it becomes part of his estate and the executor must work through the disposition of it in accordance with the terms of your father's will.

My suggstion is that both your mother and the executor contact the bank and let them know of your father's passing. The bank will not "take the money," nor will the government - it's not the bank's money, and there is no federal estate tax this year, so no worries about that. Your mother will have to change the ownership on her joint checking account to be in her name only - if the checking account is set up as "joint tenant with rights of survivorship" this will happen virtually instantaneously as soon as she provides a copy of the death certificate to the bank. The executor should set up a checking account for your father's estate - this is where cash is handled until the estate is closed out. Interest from the CD will temporarily be directed to the estate's checking account, and the executor can then distribute the proceeds as directed in the will. Once the will is probated, the executor then transfers the assets (incuding this CD) to the heirs.

My mother is still alive but my father left no will regarding the bank or any other finances The only will they both had done was regarding the property where they both lived. It was in my father's name and upon his death, it goes to my mother and upon her death it goes to her children. There was no reference in his will or hers whatsoever regarding CD account or checking account. Problem too, is that they both lived and worked in another country and they had this money here in the U.S. Well, my mother lives here with me in the U.S. now as she is a citizen but my father was not. They didn't leave any debts as they never owned credit cards and so they owe no one.

I've never heard of a will that only stipulates what should happen to a particular property, and that does not have some sort of catch-all phrase such as "all my possessions I bequeath to so-and-so." I suspect the document you're referring to is not a will, but some sort of covenant regarding property ownership. If so, then your father died without a will, and things will get a little complicated. You say he wasn't a US citizen - was he a resident alien? If so, of what state? Each state has rules regarding what happens to the property of a person who dies intestate. In many cases what happens is 1/2 of the estate goes to the wife and 1/2 is split among children or their survivors per stirpes, but it really depends on where he lived when he died. The executor will have to work through the proper splitting of assets in the estate - including the CD - among the heirs.

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Originally Posted by ebaines

I've never heard of a will that only stipulates what should happen to a particular property, and that does not have some sort of catch-all phrase such as "all my possessions I bequeath to so-and-so." I suspect the document you're referring to is not a will, but some sort of covenant regarding property ownership. If so, then your father died without a will, and things will get a little complicated. You say he wasn't a US citizen - was he a resident alien? If so, of what state? Each state has rules regarding what happens to the property of a person who dies intestate. In many cases what happens is 1/2 of the estate goes to the wife and 1/2 is split among children or their survivors per stirpes, but it really depends on where he lived when he died. The executor will have to work through the proper splitting of assets in the estate - including the CD - among the heirs.

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Mother U.S. citizen, father Nicaraguan citizen (not U.S. resident). Will was done in Nicaragua and it does say "Will and Testament" in spanish of course. Laws down there are so screwed up it isn't funny and they are very big on red-tape. After my father's death, my mother had to have the will registered and all properties transferred to her. No CD is mentioned in the will. I've seen it myself. By the way, properties referred to in the will are in Nicaragua. Problem I have with this, is that why was her name dropped from the CD account? She has the original CD when it was first opened back in the early 80's but subsequently and I have no clue why they didn't pay attention to any statements they got later on throughout the years that her name was on it. Went to the bank to check and low and behold her name is not on it and they won't talk to her about it. Only to my father and well, he can't speak now. (Bank had also stated that they won't look at any previous documents referring to the CD where her name was on). They will go by what is on the computer. Sounds like crap to me.

OK - so I now understand that this really has nothing at all to do with how estates are handled in the US. Obviously I can't tell you why your mother's name was droppped as a joint account holder - it seems like a clear screw up to me. As to how to resolve it -the bank is going to need some sort of proof that your father is dead and some sort of proof that the money should be transferred to your mother. Ask the bank what specific documentation they require for transferring assets to an heir - I suspect that a death certificate and a court order would do it. You may want to consult with a local estate attorney on this - it may be possible to have a local probate court in the US issue this since the assets are in the US, but since your father was not a resident I am not entirely sure about that.

I guess I have my work cut out for me. Sigh! I thought it would be 1-2-3 and wham! Guess not. Thanks for all your help.

It really is, you notify bank that the father is dead. Any and all of his property in the US, will go into probate. Then the court will issue and pay out the money according to either a will or by state law. So it basically will go to your mother ( in some states you may get a share if no will)

It is just harder than if her name had been on it.

Also a CD is also issues, in his records would be a physcial copy of it, that you would have to present to the bank.