Image of grandparents smiling with a grandchild in a field

Legacy Planning

There are multiple options available to you when it comes to preparing for the handling or transfer of your Credit Union assets. 

Guide to Account Ownership, Structure, & Transfer

Below, we'll outline available options, the steps you should take to put them into place, and how each option can affect access to account funds. Adding Joint Owners and/or Beneficiaries to your account may increase your NCUA Insurance coverage.
The Primary Owner on a Credit Union membership may allow an individual(s) to become a Joint Owner on one or more shares. A Joint Owner is entitled to many of the services the Primary Owner has access to, including but not limited to account withdrawals and deposits, transaction history inquiries, and a VISA debit card. Joint Owners are not entitled to open loan accounts, open additional checking shares, or account closure. 

Access to Account Funds: 
A Joint Owner has full access to the funds in the shares on which they hold ownership, both while the Primary Owner is living and after their death. Joint Ownership supersedes the death of the Primary Owner and in this event, funds are available for immediate withdraw on any share under joint ownership.

How to add a Joint Owner: 
Joint Ownership must be authorized by the Primary Owner. The Joint Owner must provide valid photo identification and both parties must sign a Member Service Agreement. A Joint Owner can only be removed from a membership if they sign a Member Service Agreement signaling this intention; once added, a Primary Owner cannot remove a Joint Owner without the Joint Owner’s signature. A Joint Owner can be added to all shares or only those chosen by the Primary Owner. 
The Primary Owner on a Credit Union membership can appoint one or more beneficiaries to account shares. A Beneficiary is not an owner on the membership and is not entitled to any services or information. A Beneficiary can be any natural person, charity, or other non-profit organization. 

Access to Account Funds: 
Upon the death of the Primary Owner (or both Primary and Joint Owners), a Beneficiary is entitled to the funds in the shares on which they are listed. In the case that multiple beneficiaries have been appointed, funds will be distributed equally between them. A Death Certificate and valid photo ID must be presented prior to funds being released to a Beneficiary. 

How to add a Beneficiary: 
Beneficiaries must be appointed by the Primary Owner. The Primary Owner needs to provide the name and relationship to the Beneficiary (date of birth and social security number are optional) and sign a Member Service Agreement. A Beneficiary can be added to all shares or only those chosen by the Primary Owner. 

For IRAs – A separate Beneficiary Appointment form must be completed by the IRA Owner to designate account Beneficiaries. 
When a Power of Attorney (POA) is presented and approved by the Credit Union, banking access can be granted to the agent/ attorney-in-fact. In accordance with the language within the POA, agents can usually conduct transactions, obtain banking history, apply for loan products, etc. The agent(s) can sign on behalf of the Credit Union member or “Principal”. 

Access to Account Funds: 
While the POA is in effect and the Principal is living, account access is granted by the Credit Union. The POA becomes null and void upon the death of the Principal and at that time, the agent’s access in this capacity comes to an end. In this scenario, survivorship depends on Joint Ownership or Beneficiary status, otherwise being left to the deceased’s estate.  

How to Process the POA:
All Power of Attorney requests are contingent on approval from Commonwealth Credit Union. The language within the POA must specifically grant capacity to conduct banking affairs. The agent must also provide valid photo identification and complete a POA Affidavit provided by the Credit Union. 
An Estate Account is necessary when an account owner passes away without a Joint Owner or Beneficiary being appointed on the account. In this case, the decedent’s assets move into probate and a court-appointed Executor/Administrator becomes responsible for disbursing the assets from the decedent’s estate. Joint Ownership or Beneficiary appointment eliminates the need for both probate and an Estate Account. 

Access to Account Funds:
The Executor/Administrator becomes the representative for the decedent’s assets, debt obligations, and overall financial picture. With presentation of the proper documents, the Executor/Administrator can obtain account and loan information and conduct transactions as needed. 

Opening an Estate Account:
The court-appointed Executor/Administrator must present to the Credit Union valid government-issued photo identification, a copy of the death certificate of the decedent, an EIN letter issued by the IRS for the Estate, and a copy of the court-appointment document issued by the District Court Clerk’s Office in the courthouse of the decedent’s county of residence. 

Important Information:
• Executor - person who is nominated and appointed according to the terms of the decedent’s Will to settle the affairs of the Estate.
• Administrator - person who is appointed to settle the affairs of a decedent who dies without a Will. 
• Estates with assets of $30,000.00 or less may qualify for an informal probate settlement. A Petition to Dispense with Administration can be obtained through your Circuit Clerk’s office.
We hope this brief overview is a helpful beginning in determining the account structure that best suits your needs! If you should have further questions regarding Joint Ownership, Beneficiaries, Power of Attorney, or Estate Accounts, please contact our Contact Center at 502-564-4775 or visit your local branch to speak with a Financial Service Representative. 
 
A Note on Trust Accounts:
Commonwealth Credit Union is limited to offering and servicing Irrevocable/Revocable Living Trusts. State trust laws can vary substantially, and your attorney should be consulted before creating or altering a trust agreement.