My aunt recently passed away and had several CDs. Can these be redeemed without a penalty by the person authorized to withdraw? If the CD has a POD clause, does that supersede the Will, if the Will leaves everything to one person?
Untitled
Whether or not a CD can be withdrawn without penalty after the owner's death is a policy decision for the bank holding the account. Contact the bank or banks involved for an answer.
As for the POD (pay on death) question, state law normally provides that a POD designation results in the ownership of the designated account being transferred at the time of the owner's death to the designated POD beneficiary, and the funds do not become part of the deceased's estate. There may be some details of applicable state law that provide some creditors of the estate to reach some of the funds in the hands of the POD beneficiary. The bank holding the account may be able to tell you if such is the case in your state.
BankingQuestions.com is a free service made possible by the generous support of our advertisers. Advertisers are not responsible for site content. Please help us keep BankingQuestions.com FREE by supporting our advertisers. When you see an ad for a product or service you may have an interest in, click through to learn more.
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
Whether or not a CD can be withdrawn without penalty after the owner's death is a policy decision for the bank holding the 