Answer:
Randy Carey
Rule? There is no rule. However, if you don't close the account and open a new one, then a whole raft of problems could arise. The list of problems is too long to list.
Answer:
John Burnett
I agree completely with Randy's response. The only reasonable exception, I think, is in the event of the death of one of the joint owners. While closing the old account and opening a new one would even then be "cleaner," many banks have found that obtaining a copy of the death certificate, ensuring that any needed change in the name and TIN reported to the IRS, making certain that ACH items relating to the deceased are properly returned and updating the styling of the account are sufficient. One other step: If you are dealing with an interest-bearing account, check to make sure the individual whose name and TIN will be reported to the IRS has a W-9 (or the appropriate W-8BEN for non-U.S. individuals) on file.
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