Personal Finance: Bank Accounts, Credit And Real Estate

Q: I held a joint bank account and/or a joint brokerage account with a deceased loved one. Will I be able to continue accessing the account?

Yes. The surviving joint owner can and does have immediate access to the assets in a joint bank account as well as joint brokerage accounts. In order to have the name on the account changed, you will need to supply the financial institution with proof of death in the form of a death certificate.

How do I access my deceased loved one's bank accounts if I am not a joint owner?

If a bank account is in the deceased's name only, the bank may require the surviving spouse to go through the collection of personal property by affidavit process. Contact the bank for information on what will be required. A spouse may gain access if he or she is named personal representative in the deceased's will. If the account was a "payable-at-death account," the account owner should have designated a beneficiary who shall receive funds remaining in the account.

Under an executive order issued by Governor Pataki on September 24, 2001, a deceased's spouse, or if there is no spouse, the guardian or care-giver to the deceased's children, will be able to make withdrawals from the deceased's bank accounts and money market mutual fund accounts by submitting affidavits to the financial institutions holding such accounts. Forms of the required affidavit should be available at the deceased's bankor by clicking on "Spouse/Caregiver Affidavit" at www.banking.state.ny.us/il010924.html. These forms must be notarized, so bring photo identification with you. Spouses and guardians/caregivers will be able to withdraw up to an aggregate total of $15,000 from all such accounts.

My loved one maintained a safety deposit box at a local bank. How can I gain access to its contents?

Each bank has its own rules about safety deposit boxes. Some banks allow a survivor to open a deceased's safety deposit box to look for a will. A bank employee will accompany the survivor to make sure that only the will is removed.

For a small estate of up to $25,000, an affidavit for collection of personal property should permit access to the safety deposit box. Some banks have forms that serve the same purpose as the affidavit. Other banks require the appointment of a personal representative before allowing access to the safety deposit box.

Access to safety deposit boxes jointly held in the deceased's and surviving spouse's names depends on the bank. Some permit free access; others seal the box and restrict access to the personal representative.

I think I might be the beneficiary of a lost loved one's securities and assets held in a brokerage account. Can I get access to these assets prior to going through probate?

Probably not, if the brokerage account is maintained in New York State. Many states allow "payable-on-death" brokerage accounts whereby the owner of an account may designate a beneficiary for such assets upon the death of the owner, but New York has not passed such legislation. If, however, the financial institution is not based in New York State, it may be possible that a payable-on-death account was established. You should call the financial institution to determine if a beneficiary was allowed and named.

If I owned real estate in New York jointly with a deceased individual, do I need to do anything in order to retain ownership of the property?

If you owned real estate with your spouse and were married at the time of purchase, you probably owned the property as Tenants in the Entirety and you are now the sole owner. No action is required to maintain your rights to the property, but you should contact the Legal Referral Service to be certain.

If you owned property with the deceased as "Joint Tenants with Rights of Survivorship" which should be clearly set forth on your deed (a copy of which should be available from the County Clerk in the county that the property is located) then you are now the sole owner and no further action is necessary. Again, you should contact the City Bar Fund September 11th Legal Relief Initiative Hotline at (212) 382-4763 to be certain.

If you and the deceased were not married and your deed does not specify that you are Joint Tenants with Rights of Survivorship, then you are a Joint Tenant and own the property jointly with the deceased. If you and the deceased once owned property as Tenants in the Entirety and you subsequently divorced, you are probably a Joint Tenant as well. Being a Joint Tenant means that the deceased's share of the property will pass to one or more beneficiaries (which may or may not be you) by a will or by operation of law (see the Probate Section of this Handbook).

Transfer of ownership to the beneficiary of a Joint Tenant must be legally transferred by filing a new deed and completing other necessary documentation after the probate proceeding. You will not be able to transfer property without probate letters and a death certificate. Certain property transfers will require taxes to be paid. You should start this proceeding prior to any contemplation of sale. The proceeding may take time and could delay a sale. A delay in the transfer from the deceased to his or her beneficiary could also result in certain penalties.

Please note that if you are the owner of a co-op, you must look to your proprietary lease and stock certificate to determine your ownership status as described above. There is no deed for a co-op. In any event, you should continue to pay the mortgage and real estate taxes on your property or you risk losing your property in a foreclosure action or tax sale.

What if my apartment lease was in the name of a member of my household who died in the WTC disaster?

A landlord cannot evict you, change the locks, or cut off your utilities without proper legal proceedings. If any of these things occurs, especially if you receive a notice of eviction, you should go to the clerk at the Housing Court with the papers you received to get the appropriate relief.

If you live in a rent controlled or rent stabilized apartment, you may be deemed as successor to the deceased individual if you are a family member and have lived with the deceased individual for some time. In NYC Public Housing, however, gaining succession rights is much more difficult and subject to particular regulations. If you believe your landlord is unfairly attempting to increase your rent, you should report it to the Housing Court.

For more information, see the Tenant's Rights Guide prepared by the NY State Attorney General's office at www.oag.state.ny.us/realestate/tenants_rights_guide.html. For directions, hours and other basic information about the New York City Housing Court go to www.courts.state.ny.us/pubinfo.htm.

Because of the WTC disaster, I may not be able to pay off some or all of my bills on time or make mortgage or other loan payments, especially in the short term. What should I do?

You should immediately contact creditors, financial institutions and any other parties to whom you owe or will owe money in the short term. Discuss your specific circumstances with each creditor and request that payments be reduced or delayed while you attempt to work things out. In all events, you should follow up any conversation with a letter which reiterates your conversation and any agreements reached during the conversation. In addition, you can contact the National Foundation for Credit Counseling (800) 388-2227 www.nfcc.org, or the budget & credit counseling service at (212) 675-5070 or (800) 475-1994 (Outside the NY area), www.buccs.com. . The New York State Banking Department can assist with financial or banking questions. Contact them at (800) 522-3330 for general consumer questions or at (800) 334-3360 for questions about your mortgage.

I may not be able to pay off my student loans. Is there relief available for me?

The U.S. Department of Education directed lenders to grant "mandatory administrative forbearance" to borrowers who live or work in New York City. The procedure allowed affected borrowers to postpone or reduce the amount of monthly payments from September 11, 2001, through January 31, 2002 due to changes in their financial circumstances resulting from the attacks. Default collection activities were also on hold until January 31, 2002. The relief was provided to borrowers who are repaying loans received under the Federal Family Education Loan (FFEL), the William D. Ford Federal Direct Loan (Direct Loan), or the Federal Perkins Loan Programs.

Forbearance beyond January 31, 2002 will require documentation and a written forbearance agreement between the lender and the borrower. If you have questions about the U.S. Department of Education's announcement, you may call (800) 4-FED-AID (433-3243) or visit www.ed.gov.

My loved one passed away, and he or she usually handled our credit cards and bills. What can I do?

If you have a joint account with your spouse, the law prohibits a creditor from automatically closing the account or changing the terms because of the death of your spouse. Most likely, the creditor will ask you to update your application or reapply in your own name and then will decide whether to continue to extend credit to you or change your credit limits. The creditor must let you continue to use the account without new restrictions while the application is being reviewed.

What do I do if I am denied credit?

Find out exactly why you have been turned down for credit, and take whatever steps are necessary to reverse the situation. If necessary, consider getting someone to cosign for you. The Fair Credit Reporting Act requires that anyone denied credit based on information contained in a credit report must be notified in writing.

A credit report is a record of your credit payment history stored in a database at a consumer reporting agency.

You can obtain a copy of your credit report by contacting a credit reporting company such as:

Equifax
P.O. Box 740241
Atlanta, GA 30374
(800) 685-1111
www.equifax.com

Trans Union
P.O. Box 1000
Chester, PA 19022
(800) 888-4213
www.transunion.com

Experian
P.O. Box 2002
Allen, TX 75013
(888) 397-3742
www.experian.com

Can I file for bankruptcy?

Generally, bankruptcy allows you to get rid of most of your debts, but it also requires you to use almost all of your assets (bank accounts, cars, stocks, etc.) to pay off as much of your debts as possible. Other bankruptcy options currently include keeping your assets but paying off your debts over time. Additionally, bankruptcy may make it more difficult to a get a mortgage, and it usually does not wipe out fines, certain taxes, and most student loan obligations. Bankruptcy is a serious decision and should only be made after careful consideration, preferably with the help of a lawyer. If you want to talk to an attorney about bankruptcy, call the City Bar Fund September 11th Legal Relief Initiative Hotline at (212) 382-4763.

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