I wanted to share a frustrating experience I’ve been having with Citibank regarding my mom’s CDs. Hopefully, this helps others avoid the same headache.
My mom opened some CDs online because she was hospitalized and couldn’t physically go to a branch. Unfortunately, the online process didn’t let her add beneficiaries. She thought that once the CDs matured, the funds would go back to her savings account (which DID have beneficiaries listed).
After she passed away, I found out Citibank keeps auto-renewing those CDs indefinitely, even though she’s gone. Now, they’re saying the only way to get those funds is through probate, which will cost my family over $23,000 in legal fees.
The worst part? For months before she passed, Citibank wouldn’t make any accommodations to help her manage her accounts, even as a private banking client. We’re completely stuck now, and the bank won’t budge.
Just a heads up to anyone dealing with elderly parents’ finances—make sure beneficiaries are listed on everything, even CDs. This situation has been incredibly frustrating, and I can’t believe this is even legal.
Have you looked into small estate affidavits? In some states, like Washington, probate isn’t necessary if the estate is under $100k. A death certificate and a notarized affidavit might be all you need. Worth checking out.
CDs typically auto-renew unless someone closes them. If the account holder is deceased, they’ll keep renewing until someone claims them or probate is completed. It’s frustrating, but pretty standard across banks.
Unfortunately, most CDs don’t just roll back into savings. Auto-renewal is the default. You’d need to follow whatever process the bank has for handling accounts after death. I agree, though—beneficiaries should have been an option online.
Playing devil’s advocate here—imagine if the bank DIDN’T auto-renew. The money would just sit in a 0% checking account until someone dealt with it. Some families take years to handle this stuff.
EmilyWilson said:
Playing devil’s advocate here—imagine if the bank DIDN’T auto-renew. The money would just sit in a 0% checking account until someone dealt with it. Some families take years to handle this stuff.
EmilyWilson said: @Finn
It sounds like the real issue is that the bank didn’t allow beneficiaries during the online process. That’s on them.
Exactly. The problem is that my mom was in the ICU on a ventilator. She couldn’t physically get to the bank to handle things in person. Online was her only option.
@NtyHY
I get that, but that’s why people set up power of attorney or joint ownership ahead of time. Not saying it’s fair, just that this stuff happens a lot.
CDs will keep rolling over unless closed. This is standard. If you’re looking at $23k in legal fees, I assume the estate is worth quite a bit. Once you have an executor appointed, they should be able to close the CDs by showing the death certificate and probate papers.
@Galen
It’s the probate fees in California. But I still think it’s ridiculous that CDs renew after death like this. Banks shouldn’t hold onto funds like that.
NtyHY said: @Galen
It’s the probate fees in California. But I still think it’s ridiculous that CDs renew after death like this. Banks shouldn’t hold onto funds like that.
Honestly, it sounds like this is more about the estate planning than the bank. If the estate’s that large, your mom probably should’ve set up a trust or added beneficiaries.
First, I’m sorry for your loss. Losing a parent is always hard. But unfortunately, this is how most banks handle CDs.
All the executor needs is to present a death certificate and their probate papers. The bank should then release the funds. Since there are no beneficiaries on the CD, the money will probably end up in an estate account.
esleystanley said:
I thought most banks let you close CDs without penalties if the account holder has passed. Maybe Citibank just makes it more complicated?
The issue is that OP isn’t listed on the CDs at all, so she can’t touch them without probate papers.