How to Access Safe Deposit Box Contents After Somebody Passes Away
My question involves estate proceedings in the state of: North Dakota
My mother and father are joint owners of a safe deposit box. It contains EE bonds and CD's.I am successor general durable POA for my mother if my Dad passes or is incapacitated. If my Dad passes before Mom, can I access the EE bonds as POA for my Mom? I am aware that an "interested person" through the filing of an affidavit in ND can access a safe deposit box for the purpose of finding a will, searching for documents regarding funeral arrangements, and to conduct an inventory of the box. But no contents can be removed. But I am talking about actually taking possession of the contents. Mom and Dad are joint owners of the EE bonds and the CD's. The CD's have us 4 kids listed as beneficiaries. I am considering selling the EE bonds and depositing the proceeds into Mom's checking account. Thank you.
Re: Accessing Safe Deposit Box Contents
As it sounds like they are both alive and kickin', why are you planning to sell the bonds and move them into your mom's checking account already?
Some quick research shows that it is not required if you have POA and some banks will only allow it if it is listed in the POA paperwork. You would need to check with your mom's bank to see what their requirements are.
Re: Accessing Safe Deposit Box Contents
I am only trying to prepare for the future and that is why I am asking the questions now. As I stated --- "If my Dad passes before Mom".
Re: Accessing Safe Deposit Box Contents
While your mom and dad are still alive, just go to the bank with them and have them add you as signatory to the box. Then you can access it anytime you like. What is in the box is view in private and you can take whatever you like. If one of your parents passes, the bank may seal the box until probate is opened.
Cashing in the bonds is another matter and the interest accrued on EE bonds is taxable as income. So be sure about what you want to do.
Re: Accessing Safe Deposit Box Contents
What I'm interested in, is to be able to access the EE bonds if Dad passes first. I'm trying to keep them out of probate and use North Dakota's small estate procedure. I have no idea of the total value of the EE bonds, but I would like to sell them if Dad passes first and deposit the proceeds into Mom and Dad's joint checking account. Then, as Mom's durable POA, I would make the checking account a POD account payable either to me or a joint account with all 4 siblings. Dad doesn't want them cashed now because he doesn't want to lose interest. In fact, I don't think he wants them cashed after he passes either. But I think the benefits of keeping it out of probate outweigh the loss of interest. I realize that after Dad passes that the bonds could be reissued in electronic form with me as a beneficiary, but that is a problem too. For one thing, I would have to pay the taxes on them and I have no idea how much that is. And then distribute to the siblings which I may have to file a gift tax return. Second, as Mom's POA, I can't reissue the bonds. A personal representative has authority to, I believe. But I can't use the informal application for personal rep because Mom has priority over me and you can't use that form if that is the case. And Mom is incapacitated. I would have to go follow a formal procedure in court to do that. So, I figure the easiest way to solve all this is to redeem all the bonds if Dad passes first and put the proceeds into Mom's checking account and then make it a POD account. Doing it this way would avoid probate plus I wouldn't be paying the taxes on them. That's why I want to be able to access the safe deposit box upon Dad's passing.
Re: Accessing Safe Deposit Box Contents
Quote:
Quoting
sw22
I realize that after Dad passes that the bonds could be reissued in electronic form with me as a beneficiary, but that is a problem too. For one thing, I would have to pay the taxes on them and I have no idea how much that is. .
That is not correct. EE bonds can be reissued in the name of a beneficiary(s) without any tax consequences until the beneficiary cashes them in. Whatever interest accrued and the maturity date doesn't change from the original issue.
Re: Accessing Safe Deposit Box Contents
Yes, but if I was named the beneficiary and Mom was the owner, then when Mom passes I would sell them and then be liable for the taxes accrued. I would rather sell them for Mom (as her POA) while she is still living (after Dad passes) and have her pay the taxes. Am I correct in my thinking?
Re: Accessing Safe Deposit Box Contents
Wow. Just wow.
That would be a huge abuse of your POA.
Re: Accessing Safe Deposit Box Contents
Well, that's why I'm on this forum. To ask questions!! I don't know what to do! So, I've explained what I want to do. What am I doing wrong? Please help!
Re: Accessing Safe Deposit Box Contents
If you sell the bonds so that mom has to pay the taxes instead of you, that is an action that is completely to benefit you and creates a financial burden your mother would not otherwise have had. As a POA, you are supposed to be looking out for the best interest of the person who granted the POA. It may even be a crime, depending on North Dakota's laws on abuse/exploitation of the elderly.