My mother and father owned several CDs in the name of "Bob Jones and/or Sue Jones." Bob has just died. The banks are requiring her to redeem the proceeds to get the CDs out of his name. She will lose the better interest rates of prior years. Why can't they just drop his name and leave the CD in her name until it matures?
Regardless of how the CDs appear on the bank's books, they are now owned by your mother individually. She should inform the bank that she will leave the names on the accounts unchanged until they mature, but ask that the accounts be updated to report the interest income under her Social Security number. The bank should make that change without requiring the closeout and reopening of the accounts. We don't believe that the bank is acting reasonably in this case, but if your mother can simply get the tax reporting issue resolved, she won't have to do battle with the bank over the names on the accounts.
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Regardless of how the CDs appear on the bank's books, they are now owned by your mother individually. She should inform the bank that she will leave the names on the 