7/23/2019 What Happens to Time Deposits When One Passes Away

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 What happens to time deposits when one passesaway?INQUIRER.netFirst Posted 09:06:00 07/10/2007

Filed Under: Personal Finance, Investents

!"0t# in $eries 2 o% &a'e (#ar)e o% *o+r one-

Question: I have numerous five-year time deposits at various banks. Will these accounts be automatically transferred to myspouse and kids if I die before the accounts reach maturity? Can they withdraw without problems? What are the documentsto be prepared? Please advise and ive some leal rulins. ! "ricia de #u$man

 nser: #en a erson dies, t#e least eole ant to orr- a3o+t is one-. nd -et, t#at is o%ten t#e case. ccordin) to t#ela, i% a erson dies, #is entire estate s#all 3e s+34ect to t#e clais o% #is #eirs, creditors and ot#er ersons #o a- #avele)al clai on #is roerties or estate. &#at eans it5s not 4+st -o+r %ail- #o ill receive t#e cas# in -o+r tie deosits. n-one -o+ oe a de3t to, and #o ot#erise a- #ave a le)al clai on -o+r 3elon)in)s ill #ave to 3e aid %irst.

$oe eole don5t realie t#at once t#e 3an' #as 3een noti%ied o% a erson5s deat#, it ill not allo an- it#draal %ro t#eacco+nt ecet %or 3an' c#ar)es.

8oever, as soon as all re+ired doc+ents #ave 3een s+3itted, t#e 3an' ill )ive t#e 3alance o% t#e acco+nts to t#eerson or ersons entitled to receive t#e. &#e re+ired doc+ents var-, deendin) on #et#er t#e estate o% t#e erson#o died !la-ers +se t#e ord decedent; is 3ein) divided aon) #eirs, 3ein) o3tained 3- a sole #eir, a s+ar-settleent, or o% a testate or an intestate roceedin).

  erson is said to #ave died testate #en #e #as le%t a ill< intestate i% #e died it#o+t leavin) a ill. In t#e %orer, secialroceedin)s %or t#e ro3ate o% t#e ill need to 3e initiated.

=elo are soe o% t#e doc+ents t#at ill 3e re+ired 3- t#e 3an' +on t#e deat# o% an acco+nt#older:

1. >eat# certi%icate o% t#e deositor 

2. n- o% t#e %olloin) le)al doc+ents, #ic#ever is alica3le.a. Etra4+dicial $ettleent o% Estate3. %%idavit o% $el%?d4+dicationc. @rder o% Partitiond. Aa%+l @rder e. Aetters &estaentar- or o% dinistration

". Proo% t#at t#e %act o% t#e Etra4+dicial $ettleent o% Estate, %%idavit o% $el%?d4+dication, @rder o% Partition or, in case o%Aetters &estaentar- or dinistration, t#e co+rtBs notice o% claiants/creditors o% t#e deceased deositor, as +3lis#edonce a ee' %or t#ree consec+tive ee's in a nesaer o% )eneral circ+lation.

C. 8eirs5 3ond. &#e co+rt a- re+ire t#e #eir/s to +t + a 3ond t#at ill anser %or an- clai t#at a- 3e %iled 3- a t#irdart- not incl+ded in t#e settleent it#in to -ears a%ter settleent.

D. &o valid #oto I>s to esta3lis# t#e identit- o% t#e #eir, adinistrator, eec+tor, or claiant.

6. Aetter o% Indenit- in %avor o% t#e 3an'

7. =irt# certi%icates and arria)e certi%icates !at t#e 3an'Bs otion

. n- o% t#e %olloin) doc+ents %ro t#e =+rea+ o% Internal Reven+e, #ic#ever is alica3le:a. &a (learance/(erti%icate +t#oriin) Re)istration and t#e 3an' receit o% a-ent o% estate ta %ro t#e =IR Reven+e>istrict @%%icer<

7/23/2019 What Happens to Time Deposits When One Passes Away

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3. =IR R+lin) t#at t#e deosits in t#e 4oint and/or; acco+nt it# a s+rvivors#i a)reeent are not s+34ect to estate ta<c. For it#draals o% ao+nts not eceedin) P20,000.00, an a+t#oriation %ro t#e (oissioner o% Internal Reven+e.

&#e National Internal Reven+e (ode o% 1997 !section 97 sti+lates t#at a certi%ication %ro t#e (oissioner o% InternalReven+e t#at estate taes #ave 3een aid s#o+ld 3e resented 3e%ore a 3an' can allo it#draal %ro an acco+nt#et#er oned alone or 4ointl- it# anot#er, i% t#e 3an' #as 'noled)e o% t#e deat# o% one o% t#e co?deositors.

 lso, 'ee a list o% -o+r de3ts and +date t#is re)+larl-. &#is ill a)ain a'e li%e easier %or -o+r #eirs or eec+tor soeda-.

$oe eole 'ee all t#eir acco+nts in 3ot# t#eir nae and a %ail- e3er5s !an and/or 4oint acco+nt. &#is a- 3e iseas it can allo t#e %ail- to access %+nds i% -o+ )et ill and need #ositaliation. ei)# t#e ros and cons o% t#is arran)eent3e%ore decidin) on it.

It5s not eas- to t#in' a3o+t deat#, t#at is #- e coend -o+ %or t#in'in) a#ead. In%or -o+r %ail- no a3o+t t#e t#in)st#e- #ave to do s#o+ld t#e tie coe so t#e- ill 3e read-.