WBA Creates Transfer by Affidavit Guide
By Scott Birrenkott
When an individual dies and leaves property subject to administration in Wisconsin, there are several types of estate procedures which can be followed. One such method involves the use of a form known as a Transfer by Affidavit (sometimes referred to as a Small Estate Affidavit). The Transfer by Affidavit is often a popular option due to its simplicity and ease of use. Because of this, Wisconsin banks are likely to encounter individuals seeking to use this form to close out accounts.
It is important to remember that a bank should not be advising or recommending anyone use a Transfer by Affidavit Form — or any other particular method to wrap up an estate. When a customer dies, the decedent’s family, attorney, or other party acting as the executor must determine the appropriate method. Estate matters can be quite complex, and the Transfer by Affidavit is not the only method available. Oftentimes, a relative of the decedent may come to the bank asking for advice on how to administer an estate. However, it is important that bankers know to refer these individuals to an attorney.
A Transfer by Affidavit may only be used for estates having a value of $50,000 or less (but again, note that it is not the only option available for small estates).
The individual who presents a Transfer by Affidavit is known as an “affiant.” There are four categories of affiants who may use a Transfer by Affidavit, that being an heir, trustee, person who was guardian at the time of the decedent’s death, and a person named in the will to act as a personal representative. As with all aspects of the Transfer by Affidavit, the affiant must determine their capacity and represent it on the form — not a banker. By completing the Transfer by Affidavit, the affiant makes various statements — under oath — regarding the property, and by accepting the decedent’s property, the affiant assumes certain duties. Most of these duties do not concern the bank, but there are a couple matters which do.
First, if the affiant is a person named in the decedent’s will to act as personal representative, banks must wait 30 days before releasing the property. The reason for this waiting period is that if, within the 30-day period, the bank is presented with an affidavit for the same decedent from another person, then the bank is prohibited from releasing the property. Essentially, it is a waiting period in which other parties might express an interest in the property. If this happens, then the bank should not release the property until instructed to do so by court order.
Another responsibility the affiant has is to notify the state of Wisconsin if the decedent (and/or the decedent’s spouse) ever received the benefit of certain medical services. The Transfer by Affidavit Form includes a section related to these services and, if the decedent (or spouse) received such benefits, or the affiant does not know, then the affiant must send notice to the state and provide receipt of that notice to the bank before receiving property. If the affiant does not provide this receipt, the bank cannot release the property.
Oftentimes, the Wisconsin Bankers Association (WBA) is asked certain questions such as: must a bank verify the affiant’s status (e.g., as an heir)? Or, what if the affiant lies or is mistaken regarding the property or other duties? These questions, and others, can be answered by considering the statutory protections received by banks releasing property to the affiant. That is, Wisconsin law provides for release of liability of the transferor of the property. Meaning, liability protections for the bank. This protection is contingent on the above conditions, but in general, banks should consider that by signing the Affidavit Form, the affiant certifies that the contents of the Affidavit are true and correct. Unless the bank, for some reason, had actual knowledge that an affiant was lying or otherwise misrepresenting information (e.g., the affiant describes property as being under $50,000 but bank knows for a fact that the estate holds property over $50,000), then the bank is not required to verify the information beyond what the statute otherwise requires.
While the above serves as a brief overview of Wisconsin’s Transfer by Affidavit Form, there are some additional nuances worth considering which are beyond the scope and format of this article. However, WBA recently created a Transfer by Affidavit Guide which goes into greater detail regarding the form, who may use it, how it may be used, along with a discussion of the law, step-by-step instruction for reviewing the form, and a question-and-answer section. This guide may be found on WBA’s website within the compliance resources section at wisbank.com/resources/compliance.
For any questions regarding the Transfer by Affidavit Form, or other topics, contact WBA legal at wbalegal@wisbank.com or 608-441-1200. Additional compliance resources, including Q&A’s, can be found by visiting wisbank.com/resources/compliance.
By Rose Oswald Poels
Advocacy is the central focus of nearly every function at the Wisconsin Bankers Association (WBA). With a mission to assist bankers in positively impacting the communities they serve, the Association plays an important role in providing resources and opportunities to all members to help facilitate the conversations that are critical to making their voices heard on matters that affect our industry and, in turn, our neighbors.
Recently, WBA’s Government Relations team mailed each member bank the annual Advocacy Toolkit. The Toolkit features several resources including best practices, how to identify and contact local legislators, as well as all the ways your bank can choose to assist the Association in our political fundraising efforts.
With the support of our members, the last biennium has resulted in several advocacy accomplishments — as highlighted by the 2022–2023 WBA Advocacy Report — on both the offensive and defensive side. While the last session was extremely active, we expect the next two years to be even more so as we prepare for the next U.S. election in 2024.
While fundraising is not always the most glamorous aspect of advocacy, it is certainly one of the most important. It ensures that those who support the banking industry are elected to office and helps our team effectively lobby for key issues impacting the industry. Looking back, I am pleased to say that in 2022, WBA raised over $270,000 to support our mission. Of course, this accomplishment is not possible without the support of our members. One hundred sixty bankers received WBA’s Silver Triangle recognition in 2022 for contributing at least $500 to our advocacy efforts, and 46 institutions earned WBA’s Gold Triangle award for political fundraising in 2022.
This year, the Association’s goal is to raise $300,000 — a feat we have not accomplished in the last five years. As you and your team consider the various ways to participate this calendar year, I remind you that any combination of donations to the Wisbankpac, Alliance for Bankers Conduit (ABW), or the issue advocacy fund move WBA closer to achieving our calendar year fundraising goal.
Personally, I give at least $4,000 each year towards supporting WBA’s political efforts and encourage not only executive management to give generously — as our livelihoods depend on the success of this great industry — but also welcome every banker to contribute as even small-dollar donations help make a big difference.
New members are encouraged to join at the Silver Triangle level, now set at $1,000, and existing members may consider doubling, tripling, or quadrupling their donation amount. As such, WBA is excited to announce two new ways bankers can be recognized for its political giving: WBA’s Leadership Circle, awarded to those who contribute at least $3,000, and WBA’s Hall of Fame Recognition, recognizing those who contribute at least $25,000 in aggregate lifetime investments through any combination of Wisbankpac or ABW.
If you have any questions regarding political fundraising or would like to learn more about which donation level is right for you, please do not hesitate to reach out to or Lorenzo Cruz, WBA vice president – government relations, or me.
Aside from making political contributions, another vital component in ensuring the health and security of banks in Wisconsin is grassroots involvement. As I have stated in a previous Executive Letter, this year we have set an ambitious goal of having 200 attendees at this year’s Capitol Day. As you may know, over 200 attendees were present for the Wisconsin Credit Union League’s Capitol Day, which was held in January. With several legislative priorities on our radar this year, now more than ever, bankers will play a pivotal role in shaping the image of our industry and ensuring that our elected officials remain informed and educated on topics that impact bankers and communities throughout the state.
Currently, only 30% of our attendance goal has been reached, and with WBA’s Capitol Day right around the corner on April 26, 2023, I urge you to register now to join me and your peers at the State Capitol. In addition to receiving a legislative briefing from our GR team, this year’s event will feature a panel discussion moderated by Jeff Mayers, president of WisPolitics.com, as well as an update from the Department of Revenue Secretary Peter Barca. In the afternoon, attendees will meet in groups with their local legislators.
Again, with so much in store for the upcoming legislative session, I appreciate those members who go out of their way to join WBA in supporting the banking industry. The dedication and support of bankers is reflected in the success of our Association and a thriving banking industry in Wisconsin.
As spring arrives, so does the March 2023 WBA Compliance Journal. In this edition, WBA Legal covers upcoming changes to FDIC’s deposit insurance rules, FinCEN’s alert on the nationwide surge in mail theft-related check fraud schemes, and a Wisconsin Supreme Court decision which upheld Wisconsin’s long-established rules for priority under receivership rules. The publication also includes a summary of recently published agency rules and notices and other important compliance-related updates for bankers, including links to FRB’s Bank Term Funding Program resources and changes made to FDIC’s Section 19 rules as a result of the Fair Hiring in Banking Act.
WBA offering numerous opportunities to get involved this spring
By Daryll Lund
As the Wisconsin Bankers Association (WBA) quickly approaches the final months of its 2022–2023 fiscal year, I am reminded of the inauguration of Dan Peterson, president and CEO of Marinette’s The Stephenson National Bank & Trust, as our Association’s chair. With an objective to increase membership engagement in the year ahead, it is extremely rewarding to look back upon all our Association has done together since June 2022.
Enhancing member engagement as part of the WBA strategic plan is focused on increasing banker participation in WBA training events including the utilization of the Engagement Center located at the WBA headquarters in Madison, the WBA Legal Call program, WBA fundraising efforts including the Gold Triangle and Bankers Involved in Grassroots and Government (BIGG) awards, as well as utilization of other Association and subsidiary services.
As we approach the final stretch of the 2022–2023 fiscal year, I am certain that bankers will find even more ways to engage with WBA.
This spring, WBA kicks off its busy season with various professional conferences and schools aimed at providing WBA members with the knowledge, resources, and connections to continue their success. Ranging from CFOs to HR and IT professionals and all the way to the frontline staff — our Association prides itself on the breadth of opportunities in store for every member of the bank.
In addition, bankers looking to make a mark on their communities and industry will be out at full strength assisting the
WBA in keeping our elected leaders informed at this spring’s advocacy events — including WBA Capitol Day on April 26 and two upcoming Washington, D.C. trips — as well as participating in activities related to Community Banking Month, Financial Literacy Month, the annual Power of Community Week, and National Teach Children to Save Day.
Of course, new chances to engage are always on the horizon with WBA. Whether you’re looking to volunteer as a committee member or help fundraise to shape public opinion on pro-banking, probusiness issues, it is up to you to choose how you will make the most of your membership, inspire professional development, educate your peers and community members, and engage with the Association!
All staff needed to help mitigate risk
By Hannah Flanders
Cyberattacks are ranked as one of the top threats to banks across the country. As these threats continue to become increasingly sophisticated and prevalent throughout our communities, bankers are looking to mitigate the risk for the safety of both their institution and all customers served. As such, administrators — including members of the human resources (HR) department — have been tapped to take on a new role alongside the information technology (IT) department to protect the bank from falling victim.
Prioritizing Cybersecurity
According to Proofpoint’s State of the Phish survey, approximately 79% of U.S. organizations reported at least one successful phishing attack in 2021. As cybercrime continues to rise — costing over $1 trillion a year worldwide, as highlighted in a report by McAfee Center for Strategic and International Studies — it is critical for the success of banks across the country that they establish a culture of cybersecurity.
In the American Bankers Association’s (ABA) Banking Risk and Compliance Management Outlook for 2023, surveyed bankers identified cybersecurity and IT risk to be, overwhelmingly, the top risk priority for the 18 months ahead. With the use of online banking and digital payments skyrocketing, and employee negligence being cited as one of the top reasons banks are put at risk — Proofpoint’s survey highlights that around 27% of employees believe that their organization/IT department will take care of any mistakes. However, as the cost of cybercrime continues to become more expensive for impacted organizations each year, finding ways to educate both consumers and employees of the cyber risks they face will not only help protect information from being compromised, but save banks from contributing to the astounding losses reported by financial institutions each year.
The Federal Bureau of Investigation’s (FBI) Internet Crime Report highlights that in 2021, Wisconsin totaled over $51,800,000 in victim losses. By taking proactive steps in both their cybersecurity protocols and training, banks throughout the state will have the opportunity to save the organization, and their customers, from substantial loss.
While banks make strides to incorporate risk mitigation — such as integrating multifactor authentication (MFA), a bare minimum in preventing bad actors from gaining access to accounts with greater privileges, and following regularly updated guidance from the Federal Deposit Insurance Corporation (FDIC), the Board of Governors of the Federal Reserve System (FRB), and the Office of the Comptroller of the Currency (OCC) — into their procedures, those seeking to optimize their efforts are looking beyond their IT staff for assistance.
Team Effort
Establishing a culture that embraces cybersecurity begins from the top and requires uniting members throughout various departments. According to Marsh McLennan, a leading professional services firm in risk, strategy, and people, “a robust cybersecurity culture starts from the top of the organization and involves continuous communication and training for leaders across all key functions.” The firm highlights that, as of 2019, nearly 90% of all organizations only included InfoSec/IT, C-suite, risk management, legal, and finance professionals in the management of cyber risk.
“Cyber defense is a team endeavor, not just an IT or a management one,” emphasizes Rob Foxx, director – InfoSec and IT audit services at FIPCO. “Threats apply to all parts of an enterprise, as should defense.”
The Cybersecurity and Infrastructure Security Agency (CISA) highlights that HR professionals play an integral role in detecting, deterring, and mitigating threats by screening candidates prior to employment, managing secure information, and regularly communicating policies.
When HR professionals have a seat at the cyber risk management table, banks not only gain a risk-conscious ally, but also ensure that HR professionals throughout their organization have a strong understanding of the cyber risk policy they utilize in their own day-to-day operations. Additionally, ensuring that the HR team is abreast of the latest cyber risks and mitigation procedures is critical so that said information can be communicated with all staff members.
Playing a Part in Protection
As the U.S. financial sector continues to prioritize cybersecurity — regularly spending up to $3,000 per employee on ongoing cybersecurity education, according to the McAfee report — ensuring that every employee is making the most of their training, testing, or coaching and remains vigilant against all threats to the organization is critical for the safety and security the institution and its customers.
- The Employee Lifecycle
Of course, HR plays a substantial role in the onboarding and offboarding process to evaluate the quality of incoming employees and ensure that all former staff are no longer granted access to confidential company data upon their departure. Furthermore, given the close ties to all staff members, HR can play an important role in clarifying policy, providing resources, and working behind the scenes to recognize and anticipate the potential information security issues, highlights the Society for Human Resource Management (SHRM).
- Training
Although cyberattacks continue to cause headaches for businesses across the country, only 64% utilize organization-wide training, according to Proofpoint’s 2022 survey. Training, which is usually administered by the IT department or virtually, has the potential to be strengthened by HR’s involvement. In taking a human-centric approach that emphasizes how all staff members — administrative through executive leadership — play a role in the security of the institution, employee morale is heightened.
Additionally, HR can emphasize and enforce the importance of practicing good cyber habits and encouraging training from the start because of the department’s close connection to all bank staff. HR staff will also notice if staff don’t attend training, regularly fail simulated tests, or display non-compliance with cyber protocols. From there, action can be elevated beyond coaching from IT staff or managers.
“A significant amount of malware is file-less and exists only in the active memory of a computer,” highlights Foxx. “While the next generation of antivirus has the ability to detect more activity than older versions, file-less attacks are just the beginning, and these tools can now detect abnormal user, host, and network activity. Ensuring your team is on the same page is a critical component in mitigating these attacks.”
- Coordinating Cybersecurity Requirements
In partnership with the IT department, HR should ensure that there are well-documented policies, standards, and best practices for not only averting attacks or breaches, but also for reporting attempted or successful cybercrimes. Throughout their day-to-day tasks, HR professionals are expected to adhere to the organization’s procedures and guidelines as well as communicate this information with staff. Understanding the various protocols, exploits, tools, and resources fraudsters utilize can help members of HR in assisting their staff to build confidence in mitigating a cyber risk. At the very least, Foxx adds, bankers should adhere to cyber security frameworks such as the NIST Cybersecurity Framework or ISO 27001 certifications, which assist organizations in gaining direction and highlighting areas of need.
As more aspects of our daily lives digitalize, and cybercrime and attacks become a regular and unfortunate normality across the banking industry, the need to secure sensitive data has become a widespread effort. It is critical that leaders look throughout their staff for unique perspectives and opportunities to educate. Establishing a culture of cybersecurity could be the difference between a secure and a compromised institution.
Ready to take your cybersecurity to the next step? Visit fipco.com/solutions/it-audit-security to ensure your bank is secure!
FIPCO is WBA subsidiary and Gold Associate Member.
By Rose Oswald Poels
Since the announcement of the failures of Silicon Valley Bank (SVB) in Santa Clara, California and Signature Bank in New York, New York, the Wisconsin Bankers Association (WBA) has been working with the news media as well as federal- and state-level government officials to reassure the public that the banking system overall — and Wisconsin banks in particular — are safe, sound, and resilient.
On Sunday, I issued a special edition of my Executive Letter to share a summary of events as they were unfolding, including the decision of the regulators to protect all depositors affected by the Silicon Valley Bank and Signature Bank failures. On Monday, WBA issued a statement to the news media highlighting important differences between the failed banks and Wisconsin banks. WBA has been working with newspapers, TV stations, and radio stations across the state to put the public at ease in knowing their money is safe in an FDIC-insured bank in Wisconsin.
Resources for Bank Customers
WBA has created a new consumer-facing piece explaining FDIC insurance. The one-page document can be printed out or shared digitally. It contains a high-level overview as well as links (and QR codes) directing readers to FDIC resources: Understanding Deposit Insurance and Deposit Insurance FAQs. WBA’s FDIC insurance resource — along with a range of other materials, including social media graphics for banks — is available in the Consumer Resources Hub.
My previous Executive Letter also contains talking points about how the situations at the failed banks were idiosyncratic and do not reflect the way Wisconsin banks operate. A number of unique factors converged at the same time to trigger the liquidity crisis at Silicon Valley Bank, which would not apply to Wisconsin banks that are not heavily focused on the volatile tech sector. As government officials, banking leaders, and economists have reiterated: Americans should have confidence in our banking system.
The Federal Reserve’s Bank Term Funding Program
The Federal Reserve has launched the Bank Term Funding Program (BTFP) to offer loans of up to one year in length to banks, savings associations, credit unions, and other eligible depository institutions pledging any collateral eligible for purchase by the Federal Reserve Banks in open market operations. The assets will be valued at par. The BTFP will be an additional source of liquidity against high-quality securities, eliminating a bank’s need to quickly sell such securities in times of stress.
WBA staff participated in a call on Monday with Nellie Liang, Under Secretary for Domestic Finance at the U.S. Treasury Department and from that call, WBA learned:
- Bank holding companies are not able to participate in BTFP. Eligible participants include any U.S. federally insured depository institution or U.S. branch or agency of a foreign bank that is eligible for primary credit under the Fed’s discount window.
- The Federal Reserve is not looking to consider municipal securities as collateral.
- Banks are not required to first utilize all other available funding options before seeking access to the BTFP.
- It is not the intention of the Federal Reserve to lengthen the one-year term.
- At some point in the future, the names of institutions who participate in BTFP will be made public in accordance with Congressional requirements.
The Federal Reserve has made an FAQ and a Terms and Conditions one-pager available regarding the program. It is my understanding the FAQs will be updated, as necessary.
The Federal Reserve announced a free webinar, Wednesday, March 15, 2023, at 1:00 p.m. ET–2:15 p.m. ET regarding the new lending program. The Federal Reserve’s Matthew Malloy, section chief – monetary policy operations and analysis, monetary affairs and Kelley O’Mara, senior counsel – legal division, will lead an Ask the Fed® webinar to provide an overview of the BTFP and address frequently asked questions that have arisen since the program’s launch. Registration for the webinar can be done through the Ask the Fed® website.
The Latest on SVB and Signature Bank Bridge Banks
Moments ago, WBA staff attended a Q&A webinar with FDIC on the status of the two failed banks. The bridge banks Silicon Valley Bridge Bank, N.A. and Signature Bridge Bank, N.A., have assumed the deposits and obligations of the failed banks. FDIC has appointed new CEOs, and their objective is to maximize the value of the entity to attract a buyer as well as minimize cost to the industry. The main theme from FDIC officials was “business as usual” — all deposits (insured & uninsured) have been transferred to the bridge bank, all contracts for services have been transferred, the bridge banks have access to borrow to ensure ample liquidity, they have the same routing number and check stock, and they can operate just as any other open and operating bank.
Our Current Focus
Our immediate priority is to make sure the public knows that the banking system is safe and sound. No taxpayer dollars will be used to repay depositors of the failed banks; longer-term policy questions about the treatment of uninsured deposits are a discussion for a later day. WBA has heard from our membership about the positive steps you are taking through both proactive and responsive conversations with your customers as well as issuing email and social media communications. Thank you for all you are doing to reassure Wisconsinites that our industry remains strong and a source of strength for our economy.
WBA members find new ways to get involved this spring
By Daniel J. Peterson
At the beginning of my term as chair for the Wisconsin Bankers Association (WBA), I announced that my top priority for the year ahead was to encourage WBA-member bankers to deepen their engagement with the Association.
Since June, our members have done an excellent job at leading the charge to shape the future of the Association and the profession. Between participating in fundraising efforts in support of pro-banking initiatives and returning in full force to the various WBA events and programs held thus far — thousands of bankers from around the state have taken advantage of their opportunities to gain knowledge, access resources, and build connections.
WBA also understands that there is much more to engagement than participation within the Association — it is a critical component of our role as bankers that we are involved in serving our communities as well.
Each spring, WBA-member banks, Associate Members, and Association staff look forward to taking part in various volunteer activities highlighting the banking industry’s commitment to the community. As Consumer Protection Week, Community Banking Month, Financial Literacy Month, and Teach Children to Save Day are all just around the corner, now is the perfect time to demonstrate to our neighbors the value of our industry.
As part of this yearly commitment to going above and beyond for our communities, WBA hosts Power of Community Week to highlight the support Wisconsin’s banking industry shows for the communities throughout our state. During the sixth annual campaign — which will be held April 17–22, 2023 — all WBA members are encouraged to showcase the phenomenal efforts put forth by their team by visiting wisbank.com/BanksPowerWI.
However your team chooses to engage with the community this spring — be it making a donation to a local shelter or nonprofit, hosting a shred day, or volunteering to educate members of your community — the value of expanding engagement both within the Association and outwards into the community is both rewarding and gratifying for all.
By Nicholas Felder
“Ladies and gentlemen please make sure your seat belt is securely fastened and your seat backs and tray tables are in their full upright position.” As many of us know, these instructions are for the safety and soundness of all those aboard commercial aircraft during what might not be a perfect landing. Well, we might all want to heed that advice and reiterate that to all our customers as soon as possible.
As of the date of this article, the American grain producer is facing $6.60 corn (which oscillated from $4.85 to $7.60 down to $5.65 now $6.60) and $13.94 soybeans (same $12.50, then $15.85, then $12.85, then $14.75, now $13.94) which isn’t all bad! However, all the pilots (and the passengers alike) who are flying across the 2022 crop year aren’t exactly sure where the runway is located and in what condition it stands. As they peer down towards harvest and post-harvest, they must deal with a dense layer of fog comprised of inflation, a strengthening dollar, global unrest, weather, mid-cycle fall elections, and the USDA’s export sales reporting system that went down just as these markets couldn’t get any more volatile. Basis spreads between new and old crops are leading the charge to what looks like a pre-harvest rally. However, the Dow and S&P markets are falling precipitously, leading some experts to believe a demand drag on domestic use is the next big hurdle for the 2022 and 2023 crop marketing cycles. Sell now or later? And, if that wasn’t enough, producers and lenders looking at the 2023 growing/feeding/milking year are facing decisions on things like fertilizer and chemical pricing, even before the ’22 crop really starts to turn away from its summer green. Can we really achieve a “soft landing” of any fashion in this environment? It’s the question both farmers and politicians are struggling to answer.
Change and interruption are inevitable in a global and electronic economy. Too many hands in the pot waiting to grab their “fair share,” while people and animals across the globe fight to find their next meal. However, preparation and a good commodity marketing offense is the best defense for headwinds of the nature noted above. It really all begins with cash flows that are created well before final planting decisions made. Then, regularly updating the living, breathing document as itemized expenses change or planting and crop maintenance is completed so it can be an accurate tool to price whatever commodity being produced. These strategies don’t have to be complex; just planned and emotionless. Nickels saved through discipline and, many times, luck create opportunities to land as softly as anyone is able in today’s environment. A producer can’t farm next year if he doesn’t make it through this year.
We all know that equity may be the key to growth, but liquidity is the key to longevity. As we transition into the autumn harvest season, your fellow banking professionals ask that you be that trusted advisor who is slightly risk averse, but supportive of growth and profitable ventures. There is still money to be made and balance sheets will improve if producers are intentional in their actions and lenders the same. The sky can be prevented from falling if we work together!
Thank you all for your service to the industry, diligence and support of America’s producers, and presence within your local communities. Wishing all a safe harvest season!
Nicholas Felder is vice president, commercial and ag banking, with MidWestOne Bank in Lancaster. Felder currently serves on the WBA Ag Section Board of Directors.