Indiana Injury And Family Lawyer BlogHow Updated Bank Verification Rules Affect Estate Administration For Indiana Families In 2025
Financial institutions have tightened their verification and authentication procedures following several well-publicized fraud incidents between 2024 and 2025. These policy shifts now influence how personal representatives, surviving spouses, and agents under powers of attorney access accounts after a customer dies. Indiana families may notice that tasks which once required a simple set of documents now demand multiple forms of proof, repeated communication with support teams, or additional in-person authentication. Understanding these requirements helps reduce administrative delays and provides families with a more straightforward path through the estate process.
Institutions adopted these changes because attempted account takeovers increased nationwide. Fraudsters targeted accounts belonging to deceased customers, especially those tied to online banking platforms and mobile verification tools, which exposed gaps in older security practices. As a result, banks, credit unions, and fintech providers rolled out stronger identity checks before they release information or funds to anyone claiming authority over an account. Families now deal with a more structured, sometimes slower process when they settle a loved one’s affairs, which is one reason it helps to speak with an estate planning attorney who understands how these verification rules affect real-world administration.
Verification Standards Have Expanded Across Traditional Banks And Fintech Platforms
Recent updates created more demanding procedures for anyone acting on behalf of a deceased customer. Banks now use additional verification layers to confirm that a personal representative or surviving spouse has legal authority to receive information. Many institutions require certified court documents, identification that matches state-issued credentials, and detailed internal forms. Fintech companies go further by requiring digital identity checks that mirror high-level cybersecurity standards.
Executors often encounter multi-step verification sequences. Some banks require repeated submissions of documents because internal review teams across departments must approve the request. Online financial platforms sometimes require video identity confirmation or device-based authentication before releasing account details. These steps intend to reduce fraud, yet they add complexity for families already managing a stressful process.
A careful estate plan anticipates these requirements. Detailed powers of attorney, clear personal property instructions, and organized financial records help families establish the necessary authority faster.
Device-Based Authentication Creates Practical Obstacles For Personal Representatives
Banks and fintech companies now rely heavily on device-based verification. A decedent often stored authentication tools on a smartphone, tablet, or laptop that locks automatically after a period of inactivity. Once a device is locked, an executor may be unable to access the confirmation codes required to access the account.
This creates a significant challenge because many institutions will not disable multi-factor authentication until a representative completes the new verification process. The representative must therefore authenticate without having access to the device that receives security codes. Some families spend weeks or months resolving this loop if the decedent left no access instructions.
Estate planning can reduce these problems. Many clients now maintain lists of digital access resources in secure locations. Others update their documents to authorize fiduciaries to use recovery methods offered by online platforms. Planning reduces the likelihood of extended delays during probate.
New Requirements Can Slow Transfers To Surviving Spouses
Surviving spouses previously accessed joint accounts with minimal paperwork. Updated policies changed that. Banks increasingly request death certificates, identity documents, and internal forms even for accounts with rights of survivorship. These institutions adopted additional steps because fraudulent claims sometimes targeted joint accounts after a death.
Some institutions require a surviving spouse to appear in person at a branch. Others ask for extended address verification or proof of ongoing residence. Fintech platforms often require digital confirmation before releasing funds connected to the decedent’s profile. These steps prolong the transfer process and complicate time-sensitive financial needs.
Families can prepare by keeping joint account records organized and ensuring that financial institutions have current contact information. Spouses benefit when estate plans clearly document ownership and account structure, especially when online providers are involved.
Executors Face More Documentation Requests Throughout The Administration
Institutions once relied primarily on a court appointment document to confirm a personal representative’s authority. That has changed. Many banks now require additional certifications, affidavits, or internal authorization forms. Some institutions ask for updated documents several times during the administration, as different departments handle account access, fund release, and final closure.
These layers create delays that ripple through the entire estate process. An executor who cannot obtain timely access to account information may struggle to prepare inventories, pay expenses, or identify liabilities. Fintech companies can be even slower because support teams often operate through ticket-based systems that require repeated uploads and status confirmations.
Organized planning minimizes these challenges. When families maintain financial inventories, document account structures, and securely store essential information, executors can complete verification more efficiently.
Digital Payment Services And Investment Apps Present Unique Issues
Mobile payment services and online investment platforms use policies that differ from those of traditional banks. Several providers automatically lock accounts after a period of inactivity or after receiving notice of a customer’s death. Others restrict a personal representative’s ability to retrieve asset information until internal fraud teams approve the request.
Some investment apps use automated systems that pause trading, freeze transfers, or disable withdrawals upon receiving a death notification. These platforms require a representative to complete additional steps before reopening the account or beginning the transfer process. Families often discover these accounts only after seeing historical bank transfers or emails, which adds complexity late in the administration.
A thorough estate plan includes provisions addressing these online holdings. Documenting each platform helps personal representatives begin the verification process quickly and avoid liquidity problems that arise when digital assets remain inaccessible.
Indiana Families Benefit From Updating Their Plans To Reflect Modern Banking Rules
Banks and fintech companies will likely continue adjusting their procedures as fraud risks evolve. Families in Indiana can adapt by keeping financial information up to date, updating estate planning documents, and creating secure inventories that list both digital and traditional accounts. Planning with these rules in mind helps reduce administrative issues and provides personal representatives with a smoother path through the process.
Speak With An Indiana Estate Planning Lawyer About These New Requirements
Talk with Attorney Burton Padove about these banking and fintech changes by calling Padove Law at 219-836-2200 to arrange a free, in-home consultation and create an estate plan that respects modern verification rules and protects your family.