Type of Ownership
Individual Account
An Individual account is owned by one member. Upon death of the owner, the funds can be released to the executor or administrator of the owner's estate once the Credit Union has received the appropriate documents. Upon the death of an owner of an IRA, the funds will be released to the beneficiary listed on the beneficiary form that is completed at the time of application.
Joint Account
A Joint account is owned by two or more individuals as joint tenants with the right of survivorship. Should one owner die, his or her share in the account goes directly to the surviving owner (or owners). In addition, each joint owner has full authority to make withdrawals or close the account.
Payable on Death and Revocable Living Trust Account
A Payable on Death (POD) account is a revocable trust agreement with one or more owners and one or more designated beneficiaries. The purpose of a POD account is to designate a particular beneficiary or beneficiaries to whom all funds are payable upon the death of all owners. The account may be set up with multiple owners and multiple beneficiaries. If there are two or more owners, the owners shall own the account as joint tenants with right of survivorship. During the owners' lifetime they are the sole owner of the funds in the account and any owner may withdraw funds from the account. By written notice to the Credit Union, the owners may individually or jointly change the beneficiary or beneficiaries at any time. Upon the death of the last surviving owner, the funds in the account will belong to the beneficiary or beneficiaries and will not be controlled by the will of the owners.
Personal Agency Account
A Personal Agency account allows the depositor to appoint an agent named on the account who may sign checks/withdrawals on the account and make deposits to the account. The funds belong to the owner, and the personal agent does not have any claim to the funds in the account. Upon the depositor's death, funds remaining in the account will be controlled by the deceased depositor's will. The agent does not have right of survivorship, and the prior authorization given to the agent terminates at this time. If the owner of the account becomes incapacitated or mentally incompetent, the agent will have the authority to continue acting on behalf of the owner.
Uniform Transfer to Minor Act Account
A Uniform Transfer to Minor Act (UTMA) account allows a transfer of funds (gift) to the minor named. A gift to a minor under the Uniform Transfers to Minors Act is irrevocable and the donor may not reclaim the funds as his or her own at any time thereafter. A minor is defined for the purposes of the Uniform Transfers to Minors Act as a person who has not reached the age of 21 years.
The minor is the owner of funds in a UTMA account. However, an adult custodian acts on behalf of the minor and may or may not be the donor of the funds. Only one custodian and one minor are allowed on each account. Any withdrawals from the account must be used for the benefit of the minor. The custodian may release the funds to the minor when the minor reaches age 18 and must do so when he or she turns 21. The custodian may make withdrawals from the account for the benefit of the minor.
Estate Account
An Estate account can be opened by a member who is serving as the administrator or executor of an estate. Also, if the decedent was a Credit Union member, an estate account can be opened even if the executor/administrator is not a member. A share account in the name of the estate must be established before other services are available.