POD bank account in AZ

[azref2627]

My brother passed away last week. He is survived by a spouse. He has two bank accounts that are just in his name only that he designated both as POD for my daughter. One account has $4000 in it and another account has $100 but is scheduled to receive $2,400 from the government for their joint stimulus payment on Wednesday.

They own no assets other than a bank account ($100) in the wife's name.

Their liabilities are 25k in credit card debt - including a judgment of 5k that was just awarded March.

I assume they don't have to file a probate with negative assets.

My question is if my daughter is eligible to either of the bank accounts? Can she withdraw the money with a death certificate?

Will the judgment be valid to claim the money before?

Thank you.

 

[adjusterjack]

Condolences.

A POD account bypasses probate because it's not part of your brother's estate and it's not touchable by creditors. It goes directly to the beneficiary automatically by law. That's the purpose of a POD account.

How old is your daughter. If she is over 18 she will need a certified copy of the death certificate and whatever forms the bank wants filled out.

If she is a minor, it gets complicated. Go with her to the bank and the people there will tell you what needs to be done.

 

[azref2627]

Thanks for the reply. Actually found out he switched accounts recently and he did not make these POD.

Is probate required since they are in his name only? The will won't be contested.

What happens to the $1200 stimulus that is his portion? Did his death supersede the actual payment even though he was alive when they granted it to him?

 

[LdiJ]

Thanks for the reply. Actually found out he switched accounts recently and he did not make these POD.

Is probate required since they are in his name only? The will won't be contested.

What happens to the $1200 stimulus that is his portion? Did his death supersede the actual payment even though he was alive when they granted it to him?

If the accounts are not POD then they belong to his estate and the creditors will have claim on the funds. Your daughter should just forget about getting any money at this point.

 

[FlyingRon]

I should point out that even if they had been POD, that doesn't put them out of reach of the debtors (especially with a judgment) when there aren't other assets in the estate to pay them.

 

[Zigner]

Thanks for the reply. Actually found out he switched accounts recently and he did not make these POD.

Is probate required since they are in his name only? The will won't be contested.

What happens to the $1200 stimulus that is his portion? Did his death supersede the actual payment even though he was alive when they granted it to him?

I don't see that you posted your state, but generally (and this is state specific), his wife is entitled to 100% of the bank accounts (or, what is remaining after creditors are paid). This is, of course, assuming that he had no children.

 

[quincy]

I don't see that you posted your state, but generally (and this is state specific), his wife is entitled to 100% of the bank accounts (or, what is remaining after creditors are paid). This is, of course, assuming that he had no children.

Arizona. It’s in the thread title.

 

[Zigner]

Arizona. It’s in the thread title.

Yep, it sure is. (oops) Thanks

That means that the spouse in this case would get everything (assuming no children).

 

[FlyingRon]

By the way, to answer the last question, if he died sometime in 2020, he (now his estate) is eligible to receive the stimulus payment.

 

[zddoodah]

Their liabilities are 25k in credit card debt - including a judgment of 5k that was just awarded March.

I assume they don't have to file a probate with negative assets.

Who are "they"?

My question is if my daughter is eligible to either of the bank accounts?

You first told us that she is the pay-on-death beneficiary, but then you wrote that you "found out [apparently in the 36 minute gap between your two posts at 10:02 and 10:38 p.m. that] he switched accounts recently and he did not make these POD." If she is the pay-on-death beneficiary, then she's entitled to the money. If she isn't the POD beneficiary, then she has no entitlement to the money.

Can she withdraw the money with a death certificate?

She will have to contact the bank(s) to find out what is needed.

Will the judgment be valid to claim the money before?

Huh? What judgment? Claim the money before what?

Is probate required since they are in his name only?

It has nothing to do with the accounts being in his name only, but it appears likely that your brother's wife can use the small estate procedure. I suggest she review Chapter 3 of Title 14 of the Arizona Revised Statutes (and, in particular, Article 12 of Chapter 3, starting with section 14-3971).

What happens to the $1200 stimulus that is his portion?

You told us that it will be deposited into one or the other of the accounts on Wednesday. Right? No one here has any information to contradict that.

Did his death supersede the actual payment even though he was alive when they granted it to him?

Again, I'm not sure who "they" are. Nor do I know what it might mean for a death to supersede a payment.

That said, if the bank accounts are only in your brother's name and they do not designate pay-on-death beneficiaries, then the accounts are part of his estate.