How safe is my bank account?

Question

I am owner of a bank account and I give my brother the right to write checks on the account . If he dies is my account frozen?

Answer 1

Let us repeat the facts just to remove any possible communication gap. So, you are the account holder (or the owner of the account). You authorized your brother to write checks on the account, he has not joined you in the account as "Joint Account Holder". This makes him your agent holding either a "Mandate" or a "Power of Attorney". An agent's (your brother) death (or incapacity due to any reason - say bankruptcy) does not effect the principal's (you) affairs. Being such, if agent dies, the account will remain unaffected. On the other hand, if principal dies, with his death, the mandate or POA gets rescinded and account gets frozen. If the agent keeps writing checks on an account after the death of principal, it will be ultra vires (beyond authority) and will be reimbursible by agent to the legal heirs of the principal.

In short, agent death does not affect the account. Principal's death freezes the account.

Answer 2

This really doesn't have anything to do with computers... but no, your account is not frozen. However, you do need to notify the bank of his passing. There will be trouble if you try to cash a check that is issued to both of you, but you won't have any trouble if you deposit it. It's best if you notify the bank immediately of any changes that need to be made to an account. You'll save yourself a lot of trouble later.

Regards,

Brandon

Answer 3

I doubt it but call your bank and make sure.
You also need to know if it is a joint checking account or if he can write checks on your behalf? i was not clear on what you meant by saying you gave him the right