|
 |
Home >> Special Situations >> Deceased Individuals
Husband Leaves 'Note' about CD: Legal?
My husband was named POD beneficiary on his mother's CD in 2004. Shortly after the account was opened, she wrote a notarized memo naming my husband as the primary account owner with full access to the account. I don't know if the "renaming" ever took place on the certificate at the bank or if the account still exists; however, my husband passed away recently with no Will, but he left a handwritten, undated and unnotarized note saying that the CD belongs to me upon his death. His mother is still alive. Who is the official owner of this CD? What rights do I have if she has at some previous time spent some or all of that money?
|
|
 State laws may affect the outcome, but here is a general response. Unless the notarized memo that your mother-in-law wrote was delivered to the bank, it could have no legal effect on the ownership of the account. Unless she had the bank modify her POD beneficiary designation of your husband on the bank's books, it would continue to be effective.
POD designations don't affect the ownership of a deposit account until the death of the account owner. Until then, the account is owned and controlled as if there were no designation. Your mother-in-law retained the right to do with the funds in the CD as she wished, as long as the account was listed in her name, with or without the POD designation. If the funds were withdrawn and the account ceased to exist, any POD designation ended then.
If the account continues to be open in your mother-in-law's name, with no change to the original POD designation, the fact that she's still alive would mean that your husband had no legal claim to the funds before his death, and his note designating you as the owner of his rights to the funds is worthless. It seems that the key question to resolve is whether your mother-in-law ever gave her instructions about account ownership to the bank. If she didn't, then you do not have any legal interest in the money.
Published on BankingQuestions.com 6/18/09
|
| |
|
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
