Arizona law: Can banks refuse money to a new payee if only the beneficiary's name and old (deceased) payee's name is on the account?

[Zigner]

It is not a trust account, it is either a check or savings account, the bank has been taking out monthly maintenance fees. They are not allowing access to the account by him or his new payee until his payee brings in a form stating she is the new payee, a copy of her 7998 IRS form and he brings in a death certificate of his former payee (who was related to him) in order to access the account. Is this legal?

Please have your friend or his wife log on to answer questions about their concern(s).

 

[not2cleverRed]

They are not allowing access to the account by him or his new payee until his payee brings in a form stating she is the new payee, a copy of her 7998 IRS form and he brings in a death certificate of his former payee (who was related to him) in order to access the account.

And they haven't done this already because?

Yes, it is fairly standard for a bank to want documentation.

What is their objection to providing the bank with these documents?

 

[quincy]

A death certificate is required by a bank when changing the names on a joint account due to death of one of the joint account holders. In fact, I would be very surprised if the bank did not demand that.

I agree with Zigner that the account holder should register here if s/he has questions. Unless you are the account holder, or the one hoping to be added to the account, you are probably too involved in their financial matters.

 

[Taxing Matters]

a copy of her 7998 IRS form

The IRS has no such form. Reread what the bank asked for and if it really is 7998 ask the bank to double check what form it wants. Do you have a name of the form? If you have that I can tell you what it is the bank is looking for.

 

[Zigner]

The IRS has no such form. Reread what the bank asked for and if it really is 7998 ask the bank to double check what form it wants. Do you have a name of the form? If you have that I can tell you what it is the bank is looking for.

I'm sure the friend or his wife will know