My four sisters and I were named as beneficiaries on CDs, POD at several different institutions. One beneficiary is out of state and cannot be reached. Three of four banks cashed out the CDs, giving checks to each individual for her share and holding the fifth for the absent sister until she is able to get the proper paperwork signed. The fourth bank stated that they would not release funds to anyone until the absent sister materialized. After which time, it will take them seven days to issue checks. How long can they withhold the funds and why is this the only bank that seems to adhere to this policy? What if absent sister cannot be located? How long can they keep the funds under my dead mother's name?
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There is no prescribed rule that all banks in all states follow when dealing with multiple beneficiaries on a single account. Unless state law has a procedure to follow, a bank has to decide how best to handle these situations, and different banks may decide differently. There may be a provision in the bank's deposit agreement that covers this situation, although this sort of thing probably comes too seldom to be addressed there. If you are still unable to contact your sister after a reasonable time and need access to the funds in the reluctant bank's account, you may have to ask a court to order the division of the account, in which case the bank would have to pay out all but the missing sibling's share.
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There is no prescribed rule that all banks in all states follow when dealing with multiple beneficiaries on a single 