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?

[Please keep it simple]

In Arizona, A friend of mine once had a Representative payee who was his father who recently passed away. After

getting a new payee that his wife they went to the bank to pull out cash for bills from the bank.Problem is, the

bank account has his father's and his own name on it. Not his wife. If they went with papers in their hands

stating that his wife is his new payee can the bank refuse to give her the money? OR do they just give it to him?

They are both over the age of 21.

 

[Taxing Matters]

If they went with papers in their hands stating that his wife is his new payee can the bank refuse to give her the money? OR do they just give it to him?

That depends on what "papers" they have. If it is a court order or some document from SSA that states she's the representative payee that puts her in a better position than if these papers are just something they drew up themselves. Banks are conservative by nature; they won't want to give out account funds unless they are satisfied that person has the right to it.

 

[Please keep it simple]

Yes, he has the official papers from SSA, stating that she is the new payee.

 

[not2cleverRed]

Yes, he has the official papers from SSA, stating that she is the new payee.

That doesn't mean that she is automatically entitled to money in his bank account.

If her name is not on the account, the bank is right to be cautious.

 

[Please keep it simple]

his name is on the account, the former payee is dead. She is the new payee. Can the bank deny access to the account and keep the money?

 

[Zigner]

The "can" is in the "did".

Please have your friend log on to ask his own questions about his own matter. We prefer to speak to the person involved, as he may have information that you are not privy to. Thank you for your understanding.

 

[not2cleverRed]

the

bank account has his father's and his own name on it. Not his wife.

The solution is to add his wife's name to the account.

 

[LdiJ]

In Arizona, A friend of mine once had a Representative payee who was his father who recently passed away. After

getting a new payee that his wife they went to the bank to pull out cash for bills from the bank.Problem is, the

bank account has his father's and his own name on it. Not his wife. If they went with papers in their hands

stating that his wife is his new payee can the bank refuse to give her the money? OR do they just give it to him?

They are both over the age of 21.

If his name is on the account, he should simply go and withdraw all of the money, and deposit it in a new account that includes his wife's name.

 

[Zigner]

If his name is on the account, he should simply go and withdraw all of the money, and deposit it in a new account that includes his wife's name.

I'm not sure that's the best idea. Benefits may be affected by assets. The OP doesn't have important information which may affect any advice given.

 

[LdiJ]

I'm not sure that's the best idea. Benefits may be affected by assets. The OP doesn't have important information which may affect any advice given.

Huh? His name is on the account to start with, therefore the money is already an asset to him. This isn't an inheritance or anything like that. This is an account where his SSI or SSDI is being deposited.

 

[Zigner]

Huh? His name is on the account to start with, therefore the money is already an asset to him. This isn't an inheritance or anything like that. This is an account where his SSI or SSDI is being deposited.

We don't know HOW the account is titled. For all we know, the account could be set up as a special needs trust account. That's why it's better to deal with the people actually involved.

 

[LdiJ]

We don't know HOW the account is titled. For all we know, the account could be set up as a special needs trust account. That's why it's better to deal with the people actually involved.

That is more than a bit unlikely since it is the account where is SSI or SSDI is being deposited. However, I cannot disagree that it is best to deal with the people involved.

 

[Please keep it simple]

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?

 

[LdiJ]

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?

Obviously the bank is acting from an excess of caution. If he is on the account there normally would be no reason why the bank should attempt to deny him access. However, I suspect that his new payee caused enough confusion with the bank in attempting to access the account that they are now acting from an abundance of caution. They should simply provide the bank what they are asking for.

However, the IRS does not have a form 7998 so I don't know what they are talking about there.

 

[Just Blue]

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?

Perhaps. Depends on how the account is titled.