I am beneficiary on a POD account from my father. I left enough money in the account to pay a few mortgage payments and to pay for the funeral. Without my knowledge, the bank froze the account and the house and funeral checks bounced. Is this normal procedure? I am in Missouri.
There are provisions in the banking laws of Missouri that provide that a bank holding a Payable on Death account can be prevented from paying funds over to the Payable on Death beneficiary if the bank receives a court order directing that such payments be stopped. Such an order might be issued if there is someone else who has claimed an interest in the account and asked the court for an order pending resolution of the question of ownership.
On the other hand, have you actually gone to the bank to have the account transferred into your control? It can't happen automatically. The bank may be waiting for you to provide documentation of your father's death and of your identity.
Contact the bank itself to find out why it has blocked your use of the account. The explanation will probably be quite simple, and the resolution equally easy.
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There are provisions in the banking laws of Missouri that provide that a bank holding a Payable on Death account can be prevented from paying funds over to the Payable on Death beneficiary if the bank receives a court order directing that such payments be stopped. Such an order might be issued if there is someone else who has claimed an interest in the account and asked the court for an order pending resolution of the question of ownership.