Is this how things are done? UPDATE

[Melinda S in TX]

Steven passed away May 30.  Our credit union where we have checking and savings accounts, found out last week about Steven and froze our account.  We were both on the account, with Steven as primary and me as secondary.  The credit union says I will need my own brand new account.  I took them the information they requested, and they said they will call when the legal stuff is done and I can open my new account.  Is this how things are done now?  My mom is still using the account she and my dad had, even though he passed away in 2008.

 

UPDATE in #18.

 

Another UPDATE in #34.

[ajfries]

I'm so sorry for your loss. When I worked at a bank, as long as both people were signers (primary or secondary) on the account, nothing would need to be changed. If you wanted him removed, THEN legal documents would be necessary, but you could go on writing checks and using the account as long as you wanted.

 

Maybe credit unions are different?

[bettyandbob]

It may be specifically that way because of the primary/secondary listing. I know it is than way with credit cards. This is why I have also had one credit card where I am listed at the primary account holder. 

 

My credit union account is specifically a joint account, but now I want to go check out the rules on that

[zoobie]

It varies by state, but generally, yes. JTWROS accounts when the secondary holder is the "survivor" belong to the surving holder but need to be re-established under that person's Social Security number. If the primary account holder is the survivor, the bank can remove the secondary with a death certificate. It's for tax purposes. Banks have to track money movement and it is reported using the primary's SSN.

 

I hope you weren't inconvenienced by the frozen account. If you had an estate attorney, s/he should have advised you on switching over the account proactively. I'm sorry for your loss.

[DragonFaerie]

I don't have a ton of experience with this, but I have never heard of something like that.  When my mother passed away they didn't freeze my parent's joint account.  When my grandfather passed away, they did not freeze my grandparent's joint account.

 

But I don't know, maybe some credit unions or account configurations have different rules.

I'm very sorry for your loss.  I hope they resolve that quickly because that sounds very frustrating.  :grouphug:

 

We lost my father on June 7th and I have been helping my mom with her finances.  She has not had any trouble with continuing to use their joint checking account.  It was at a bank, though, and not a credit union.  That might make a difference.

 

[Luanne]

My father passed away on May 22.  The bank did nothing to the account.  My mother is still using it.  Maybe Credit Unions are different (and apparently annoying).

[*LC]

Melinda,

 

I'm so sorry. 

 

Our bank didn't freeze our account after my husband died. However, when I took him off the account, they changed our online banking password without telling me. It is amazing how complicated a spouse dying can be.  

 

Did they tell you how long the process would take? It should be quick with the paperwork you provided. I would be tempted to close those accounts as soon as you are able and open new ones somewhere else if it isn't a lot of extra trouble.

 

In fact I did that with a CC company that cancelled our cards after his death. We had one CC that cancelled the account as soon as they learned of his death, but they immediately opened a new one in my name & sent me the cards. (I wasn't thrilled at the time, but I got it.) The other CC didn't learn of his death until I told them he wouldn't need a card years later. (Our new cards hadn't come after old ones expired. When I called about it, they said they could send me mine, but my husband would have to call to request his own. So, I told rep that he was dead.) The rep immediately cancelled our cards, and he said I would have to apply for a new one. He said I would have to go through the approval process to see if I qualified to have a card. I asked him who he thought had been using and paying the card in the 4 years since my husband died. Didn't make a difference, and I refused to apply for a card from them. Luckily, I had a pre-approved offer on my desk, that I sent in that same day. 

 

I still haven't told a mortgage company. The payment just keeps coming out of the same checking account like my husband set it up years ago. 

 

I wish you didn't have to jump through any extra hoops. Praying for you as you order checks with just your name. That was hard for me, and I had until I ran out of checks. I can't imagine doing it so soon after Steven died. Hugs to you. 

 

[Melissa in Australia]

:grouphug: :grouphug:

[Pawz4me]

My brother and I were JTWROS on our mother's credit union accounts and we had no problem continuing to use them following her death.  So it's not a credit union thing in general.  I did go in and talk to them soon after we had death certificates.  They (and all the banks she had accounts with) asked that her name either be removed from the accounts or the accounts be closed out within a certain period of time.  That may be what's at issue here? It sounds as if you hadn't stopped by to talk with them and provide a copy of the death certificate?  As Zoobie said above, if nothing else they need your SS number and need to know that they should start reporting under your number.

 

:grouphug: :grouphug:

[carriede]

I don't know about typical procedures, but...

 

My dad died in a tragic accident 2.5 years ago. It was all over the news. So my mom's CU "found out" about his death very soon after it happened. They froze all the accounts. My mom, immediately after my dad died, had NO access to her money.

 

The crazy part is is that the CU did all this based on a newspaper article. My mom went to their office to see what she needed to do to access her money, and they said she needed the death certificate among other things. The problem was, there was NO certificate yet! The coroner was still working on identifying his body! So there was no way to prove WHO had died... Yet the CU had frozen those accounts based on a newspaper article.

 

Dumbest thing ever. It then took another 6 weeks for my mom to get a copy of the death cert. but that's another story. :/

[creekland]

:grouphug: No advice, but plenty of  :grouphug: .  How are you and your family doing?

[giraffefamily]

:grouphug:

 

Reply #4 was my experience - I am the cu member / primary, and took death cert in to remove his name from the accounts.

Re: credit cards - those in his name (primary and I was secondary) were closed. I found out that the process is different in some states though. Some people said that they couldn't even speak w/ me on the phone depending on where I lived - have to move through probate.

[datgh]

After my dad passed away last fall, my mom went to pick up her prescriptions and found that all her credit cards had been cancelled because dad had been the primary on all of them.  One credit card company even sent the account to a collection agency who promptly started harassing her.  Not even the courtesy to send her a final bill!  Not really what she needed to be dealing with at such a difficult time.  I'm sorry you are having to deal with this now. The paper work is a bear to work through. 

[Lady Florida.]

My mother banked at a credit union and because she was single she put me on her checking account. There was no hold and there was nothing I had to do when she died. I had full access to the money. I did have to bring her death certificate when I closed the account but that was because it would have required both of us to close it.

[Farrar]

:grouphug: I'm not sure about what's typical everywhere, but I know my mother spent a solid year sorting out her finances from her dh's after he passed away.  They had even done a bunch of stuff to prepare because he had been sick for a long time, but it was still just an ordeal at every level.

[Melinda S in TX]

I'm so sorry for all of you who have lost someone.  It's hard enough without all of the extra red tape people make for you.

 

When I first talked with the credit union, they froze our account and wouldn't give much info other than I had to have a new account.  I've talked with them several times since then and have a little more info than I did before.

 

The account is frozen and will stay frozen until they close it.  There won't be any problem getting me the money from the account after they close it, but they are trying to keep it open so some pending transactions can clear.  Right now, I have several pending debits (electric company, cell phone, home phone), outstanding checks for our mortgage and to the funeral home, and the children's first social security survivor benefits to be deposited first of next week.  If they close the account all of these transactions will not be accepted by the credit union, and I will have more work trying to clear up bounced transactions.  After these transactions clear, the credit union says it shouldn't take long to close the account and open the new one in my name, but they can't give me a more exact timeline.  There is still the possibility that someone in some department at the credit union won't get the memo and will close the account prematurely, but they are trying to keep it open until these remaining transactions clear.

 

Why I can't keep the same account, noone can tell me.  They say that's just the way it is.  That means a lot of changing direct deposits, automatic bill pay, new checks (you're right LC, I'm not looking forward to that), etc, but I can't even begin any of that because I don't have a new account to direct these things to.  Right now, the frozen money is inconvenient, but we're ok.

 

Thanks for the hugs and the advice.  I knew I could count on the hive for both.

[Stacia]

:grouphug:

[ajfries]

Melinda, have you spoken to a manager? I'd ask to see the policy in writing, and I'd mention that I wouldn't be too eager to continue doing business with them. If you have to open a new account anyway, it might as well be with some one else. 

 

I understand that policies are in place for a reason, but they need to GIVE you a reason. It can't just be "Too bad, so sad, that's just the way we do it." Things are hard enough for you right now as it is; they should be doing everything they can to make the process easier on you. Even if all they can do is thoroughly explain the policies & procedures.

[OneStepAtATime]

Melinda, have you spoken to a manager? I'd ask to see the policy in writing, and I'd mention that I wouldn't be too eager to continue doing business with them. If you have to open a new account anyway, it might as well be with some one else. 

 

I understand that policies are in place for a reason, but they need to GIVE you a reason. It can't just be "Too bad, so sad, that's just the way we do it." Things are hard enough for you right now as it is; they should be doing everything they can to make the process easier on you. Even if all they can do is thoroughly explain the policies & procedures.

I agree with this wholeheartedly.  Talk to the manager.  See the written policy.  Also, do you have any sort of CPA/Lawyer helping you out?  There could be quite a few oddities coming up that could cause tremendous problems down the road if handled incorrectly now (settled 3 estates so far and all were challenging).

 

And huge hugs.  :grouphug:  :grouphug:  :grouphug:

[jrn]

:grouphug:

[Eagle]

That is ridiculous that you have to deal with that. :grouphug:

[East Coast Sue]

I am so sorry that you have to deal with the bank freezing an account on top of your loss. Please appeal to the manager or a lawyer to help resolve this issue. I wish I could help more. (((hugs)))

[Melinda S in TX]

The credit union manager is who I have been talking with.  I only know what she has told me, but I will ask to see the policy in writing.

 

My lawyer took care of all necessary paperwork before Steven passed away, but as long as we were both on the accounts, he didn't advise changing anything.  I have talked with him recently, but he is waiting on me to be ready to probate the will which I'm not doing until I get finances sorted out and talk with our financial advisor.

 

I couldn't settle any of Steven's accounts (joint accounts but he's primary on all of them) until I knew what our financial situation is going to be.  I have been waiting to find out about the life insurance and the children's social security survivor benefits.  Both are finally taken care of (I know what they are, but they are in the frozen account) and now I have an appointment with our financial adviser.  After that appointment I will see the lawyer to probate the will.

 

When I get an account and the frozen money, I will talk with the other credit union and credit cards we have accounts with.  But since our main account is frozen, we are living on the credit card, and I don't want to rock the boat.

[OneStepAtATime]

:grouphug:  :grouphug:  :grouphug:

 

Good luck.

[Ann.without.an.e]

I have no idea why they should need to freeze your account, but I didn't want to read and not post.  I am so sorry for your loss.  You don't need this added stress!   :grouphug:  :grouphug:  :grouphug:

[HelenNotOfTroy]

I don't know why they took action on the account without a death certificate, but it is standard (federal) credit union rules that one person on the account is the member and the other person would need to open a new account rather than removing the primary.

[Tammyla]

:grouphug: I'm sorry, and don't understand why they are handling it this way.  I guess CUs are different from traditional banks???  My mil didn't have to change her / their joint  bank account number (as far as I know) when fil passed away; there was some red tape, but her attorney pretty much handled it with her.

[zoobie]

That additional detail sounds like the credit union is...off or something. No way should the account be frozen indefinitely! I'd call the state banking authority. And set up my new account in a new bank! :grouphug:

[LinRTX]

Melinda,

 

it's been 4 years since I lost my dad and walked my Mom through this, but I fuzzily remember them leaving some money in the account to take care of any pending debts and moving the remainder to a new account for my mom. Then we coud set up all the direct deposit and payments from the new account right away.

 

Does this make sense? Would the CC be able to do something like that?

 

Sorry this has been harder than needed.

 

Linda

[73349]

They should be able to open a second account for you now, rather than waiting until the previous account is closed. :/

 

I'm sorry.

[Melinda S in TX]

Another update:

 

The manager called this afternoon and told me I could open my new account whenever it was convenient.  If I came when she was there, I wouldn't have any extra hoops to jump through since she already had all of my information.  I went right away and opened my new accounts.  It is law, not credit union policy, that I have to open my own accounts.

 

Apparently our old account wasn't frozen yet.  Not really. 

 

The manager is trying to help to me and is holding off passing on the paperwork.  As soon as she sends the paperwork in, the accounts will freeze and I won't have access to any money left in the accounts.  I will eventually get this money, but it could take a while.  I didn't know she was holding up the paperwork and the way she has been saying it made it sound like the accounts were already frozen.  Really, I just needed to stop using the accounts so transactions could clear out and I need to change all of my bill pay transactions.  Several things have cleared, but I am still waiting on the electric bill and the children's social security.  I'm keeping track online and as soon as things clear I will call, and she  will transfer the money to my new account and send in the paperwork.

 

I opened new checking and savings accounts, and the manager moved money from the old accounts but left enough to cover the electric bill.  I don't have a debit card or checks yet, but I can go to the bank and withdraw whatever I need.

 

I can't wait until this bump in the road is fixed.  I've got lots of other things to do and just want to check this one off my list.

[MarinesWife]

So glad to read the update!