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Custodial CD

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ny2prowler

Junior Member
What is the name of your state (only U.S. law)? NY

Hello, I have a question about a custodial bank CD.
My mother past away 6 months ago. I found out that she created 3 custodial CD's for my 3 daughters. She did not leave a beneficiary, or a second custodial to the account. The bank will not release the money to my daughters or myself because I am not a custodial on the account.
I have received 3 different answers from the bank to resolve this.
1. Go to court.
2. Have my daughters sign papers to give me custodial rights.
3 Have my older sister who is now head of the estate to sign over the rights.

Please advise on what is the best way to have me as the custodial of all three accounts.

Thank you
 


ny2prowler

Junior Member
The reason why I want the task is that my oldest daughter who is 19 is going away to college and can use the money for her tuition. How can she withdraw the funds if my mother was the only named custodian. She is now deceased. The account has a balance of $9,800.
 

Dave1952

Senior Member
So the bank is holding the CDs? And they will allow you to become "custodian" if your daughter(s) sign off on this? What's the problem? That's cheap and easy. Make an appointment with the bank officer, go with your daughter(s), show IDs, read and sign the custodial documents.
I do not believe that the CDs are part of your mother's estate and do not think that the executrix has any rights here.
 

FlyingRon

Senior Member
How old are the daughters?

If they are 18 or over, they can sign the rights to you (though I have no idea why on earth that would be in their best interest). She can get access the funds herself.

As you were told, if the children are not yet 18, then you must either get the estate to transfer them to you (or someone else) OR get a court to act (which will likely take naming a guardian OTHER THAN YOU to represent the interests of the minor).
 

ny2prowler

Junior Member
So the bank is holding the CDs? And they will allow you to become "custodian" if your daughter(s) sign off on this? What's the problem? That's cheap and easy. Make an appointment with the bank officer, go with your daughter(s), show IDs, read and sign the custodial documents.
I do not believe that the CDs are part of your mother's estate and do not think that the executrix has any rights here.
I was told by the Bank that the CD's are now part of the estate since my mother did not name anyone as the successor. My oldest sister has legal documents that made her head of the estate which now makes her custodial of the CD's of my daughters accounts. The bank said I will have to go to court to transfer the custodianship from my sister to me. My daughters ages are 19, 16, 14.
 

ny2prowler

Junior Member
How old are the daughters?

If they are 18 or over, they can sign the rights to you (though I have no idea why on earth that would be in their best interest). She can get access the funds herself.

As you were told, if the children are not yet 18, then you must either get the estate to transfer them to you (or someone else) OR get a court to act (which will likely take naming a guardian OTHER THAN YOU to represent the interests of the minor).
My 19 year old went to the bank and they told her she can't withdraw it because since my mother did not name a successor the account is now part of the estate. I would have to go to court to release the account from the estate. I don't know why my sister can't just sign a release to my daughter to give her ownership of the account since she is the legal head of the estate. I think my sister is giving me the run around.
 

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