Regulatory Alerts2023-06-11
Joint Accounts Survivorship Clause and Handling Existing Charges After Death
The Supervisor of Banks amended the Proper Conduct of Banking Business Directive to clarify the legal limitations of the survivorship clause in joint accounts and to mandate specific procedures for handling existing charges after a co-owner's death. Banking corporations must now clearly present the survivorship option during account opening, explain that it does not transfer asset ownership rights to heirs, and actively assist surviving owners in managing payments linked to the deceased. Additionally, banks are required to notify surviving co-owners of existing charges and facilitate their transfer or cancellation to ensure rapid and convenient service during this sensitive period.
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