What to do when a Bayer Heritage account holder dies

Sent by the institution on request.¹

Under the Account Disclosure's West Virginia and Ohio sections, the balance of a joint account with right of survivorship belongs to the surviving owners as joint tenants with survivorship, subject to any pledge the credit union agreed to.²

At the death of the last surviving owner, ownership passes to the named payable-on-death beneficiaries and is not part of the estate. Living beneficiaries take equal shares unless written percentages were filed.²

An account with no payable-on-death beneficiary, joint owner or trust is paid to the personal representative, who presents Letters Testamentary or Letters of Administration.¹

The Account Disclosure's "FIDUCIARY ACCOUNTS" clause allows an executor or administrator acting under court orders to open an estate account at the credit union.²

The beneficiary named on the IRA's own designation claims it through separate IRA distribution paperwork. The deposit-account payable-on-death designation does not reach an IRA.¹

The beneficiary named on the Coverdell education savings account's own designation claims it through separate Coverdell distribution paperwork. The deposit-account payable-on-death designation does not reach a Coverdell account.¹

The Truth in Savings disclosure states that the law permits, or in some cases requires, waiving the early withdrawal penalty on a share certificate in circumstances such as the death of an owner.³

Bayer Heritage sells TruStage payment protection on loans and credit cards. Its Life Plus benefit "Cancels 100% of your protected balance up to $100,000 (under age 70) and 25% of your protected balance up to $25,000 (after age 70) should you become deceased before paying off the loan."¹

A single-party account passes as part of the owner's estate. A multiple-party account with right of survivorship passes to the surviving parties (spouse first where one survives), and an account with a pay-on-death designation passes to the POD beneficiaries outside the estate.²

The Uniform Single-Party or Multiple-Party Account Selection Form Notice controls. A convenience signer owns nothing at death unless also named a P.O.D. payee or trust beneficiary, and on a trust account the balance passes to the beneficiary at the death of the last surviving trustee.²

Payment protection death claims on Bayer Heritage loans and credit cards⁴

Under the Account Disclosure's "DEATH OR INCOMPETENCE" clause, the member's family agrees to notify Bayer Heritage promptly if any person with a right to withdraw funds dies.²

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 that knowledge.²

The credit union may pay or certify checks drawn on or before the date of death for up to ten days afterward, unless someone claiming an interest in the account orders it to stop payment.²

Any power of attorney or agency authorization on the account terminates on the death of the owner.²

The credit union may require anyone claiming a deceased owner's account funds to indemnify it for any losses resulting from honoring that claim.²

The credit union's right of repayment and statutory lien let it apply the member's shares and dividends to a due-and-payable debt. The Account Disclosure says these rights do not apply to an IRA or similar tax-deferred account, or to a debt under a credit card plan.²