|
 |
Home >> Accounts >> Certificates of Deposit
Confusion Over CD with 'OR'
My mother and her brother had a CD. The account read "Emily OR Edward." Edward died. My mother actually funded the CD, her SSN was used, and she paid the tax on the interest. She now wants to cash in the CD and add my name to the new CD. The bank claims that they will only give half the money to her now, since they know her brother passed away. I say that the account reads "OR" and she should be able to get the full amount. Who is correct?
|
|
 The bank's record should reflect how the CD was held. The use of "OR" in the account title doesn't define ownership. If the account records show that your mother and brother were joint owners with rights of survivorship, your mother is the rightful owner of the entire account. If the records show that they owned the account without rights of survivorship, then either the account's ownership is split between your mother and the estate of your brother based on a statement of their ownership percentage or on a 50/50 basis, if there is no statement in the bank's records of ownership allocation.
Your mother should start by asking to see a copy of the deposit contract for the CD, and look for any language that indicates whether survivorship is part of the contract. She should check with an attorney concerning the particulars of your state's laws on joint account ownership, but in general, when account records fail to indicate whether there are rights of survivorship, such rights are assumed under the law. Of course, if the bank relents and acknowledges that your mother owns the entire account, she won't need to talk with an attorney.
Published on BankingQuestions.com 1/28/09
|
| |
|
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
