We had a husband and wife who had a number of CDs (like 8) and savings accounts (2) with us. Both of these owners have passed away (2 years ago now) and these accounts are just sitting here with no activity. The savings accounts have 2 beneficiaries, with whom we can not get in contact with, and all of the mail that is going to the address on file, for the couple, is being returned to the bank. The 2 savings accounts will be going dormant, and we understand the timeframe that requires, but do we/should we do anything with the CDs? What are we required to do with the CDs if they do not go dormant and eventually not escheated by the state?

How were you informed that the deposit holders were deceased? I am not sure how could they not go dormant?

We found out about the passing of both owners from our local funeral home who places the funeral cards in the bank lobby and at other businesses. We then check the cards to see if they were account holders of ours.

Are CDs allowed to go dormant? We have never placed dormant status on CDs before if that is what you are referring to.

You need to get with your legal counsel. I am not sure how you can let CDs perpetually renew without escheatment once all correspondence is being returned to the bank as undeliverable.

https://law.justia.com/codes/indiana/title-32/article-34/chapter-1-5/section-32-34-1-5-11/

In these types of situations we do not allow for the CD to renew. We flag it on our system as non renewable and let it sit. The account does not earn interest at this point and does not go into domant status. Thanks for attaching Article 34 as a reference. And yes, legal counsel might be in order.

This is going to need to be a high priority item. The bank could be in for some serious fines if you have not been escheating property timely.

Thanks rclarey