Frozen account

[lazydaisy46]

What is the name of your state? TX

I have an elderly aunt whose husband has had a stroke and isn't expected to live. Relatives are telling her that upon his death, she
must immediately go to the bank and withdraw all the money (by bank check) from their joint accounts and deposit the money in another bank in her name only. According to the relatives, as soon as the bank finds out about the death, they will freeze all the funds in their joint accounts, and she willl not have access to her money until the estate is settled.

Is there anything to this?

Thanks,

Jo

 

[I AM ALWAYS LIABLE]

What is the name of your state? TX

I have an elderly aunt whose husband has had a stroke and isn't expected to live. Relatives are telling her that upon his death, she
must immediately go to the bank and withdraw all the money (by bank check) from their joint accounts and deposit the money in another bank in her name only. According to the relatives, as soon as the bank finds out about the death, they will freeze all the funds in their joint accounts, and she willl not have access to her money until the estate is settled.

Is there anything to this?

Thanks,

Jo

My response:

If the account is, in fact, a "joint account" WITH "Right of Survivorship" (which it probably is), then no, the relatives are wrong. Upon his death, the money in the account is IMMEDIATELY hers, and hers alone, and bypasses Probate altogether. There can be, and will be, no "freeze" because she is an owner of the account.

It's the same as saying that they both owned a car, and both of their names were on the title. Then, he dies. The relatives are saying, in effect, that she wouldn't be allowed to drive the car.

Of course, that's simply rediculous.

But, it couldn't hurt for her to call the bank and simply ask, "How is the account titled - - is it joint, with right of survivorship?"

IAAL