What to do when an American Eagle FCU account holder dies

Completed by the named IRA beneficiary. Sent by the institution on request.¹

The disclosure states that if one owner dies, the money then belongs only to the survivor and not to the estate of the deceased person. The deceased member is removed from the account.²

On a payable-on-death or revocable trust account, beneficiaries take only after all persons who created the account have died, and only if the beneficiary is then living. They take in equal shares, without right of survivorship, on presentation of a certified death certificate and photo ID.¹

The successor trustee provides the trust agreement or Certificate of Trust plus the certified death certificate. American Eagle opens fiduciary accounts but does not act as trustee or monitor the trust's terms.¹

An individually owned account with no payable-on-death beneficiary needs Letters Testamentary or Letters of Administration from the Connecticut Probate Court district in which the member resided.¹

The named IRA beneficiary completes the credit union's IRA distribution paperwork under the IRA agreement. A payable-on-death designation does not apply.¹

The Truth in Savings disclosure records that in certain circumstances, such as the death of an owner, the law permits, and in some cases requires, waiver of the early withdrawal penalty. Ask about the waiver.³

Credit Life and Disability claims on American Eagle loans⁴

The "DEATH OR INCOMPETENCE" clause requires you to notify American Eagle promptly if any person with a right to withdraw funds dies. The credit union may continue to honor the member's checks, items and instructions until it knows of the death and has had a reasonable opportunity to act on it.²

American Eagle may pay or certify checks drawn on or before the date of death for up to ten days after the death, unless someone claiming an interest in the account orders a stop payment.²

Under the "RESOLVING ACCOUNT DISPUTES" clause, American Eagle may place an administrative hold on the funds, refusing payment or withdrawal, when the account becomes subject to an adverse claim, a claim by survivors or beneficiaries, or a claim arising by operation of law.²

It may hold the funds until the dispute is resolved or a legal proceeding determines its merits.²

Spouses of persons who died while within the credit union's field of membership are an eligible category, so a surviving spouse who is not a member can join in their own right and keep a payable-on-death or survivorship balance at American Eagle.¹

Former Wellness Federal Credit Union members follow the same procedures. Wellness accounts were converted onto American Eagle systems by the end of 2024.¹