What to do when a California CU account holder dies

With no beneficiary and no surviving owner, the personal representative provides Letters Testamentary or Letters of Administration with their ID, or a California small estate affidavit.¹

The bylaws say: "The share account of a deceased member (other than one held in joint tenancy with another member) may be continued until the close of the dividend period in which the administration of the deceased's estate is completed."²

Joint accounts are held with right of survivorship, so sole ownership passes to the surviving owner immediately, and a will cannot change that. The surviving owner presents the death certificate and the title is updated.¹

Funds are first payable to any surviving owner and go to the beneficiaries, in equal shares, only after every account owner has died. If a named beneficiary died before the owners, that share is split among the surviving beneficiaries.¹

Before transacting, a successor trustee gives a letter of resignation from the resigning trustee, a certified copy of the trustee's death certificate, or other appropriate documentation, and signs a new Certification of Trust.³

CCU treats executors, administrators and conservators acting under court orders as fiduciaries, and the Letters and the court order govern the account.¹

If the custodian of a minor's account died, CCU deals only with a designated successor custodian from the time it receives notice.¹

The named beneficiary claims directly with the death certificate, ID and CCU's distribution or inherited-IRA election forms.¹

The named beneficiary claims directly with the death certificate, ID and CCU's distribution forms.¹

A setoff against a share certificate also triggers that certificate's early withdrawal penalty.¹

The account agreement says: "You should notify us immediately if any owner or authorized signer on your account dies."³

Once CCU is aware of the death it may freeze, refuse or reverse transactions.³

The member's death does not revoke CCU's authority to accept, pay or collect a check until it knows of the death and has a reasonable opportunity to act.³

Even after it knows of the death, CCU may for 10 days after the date of death pay or guarantee checks drawn on or before that date, unless a person claiming an interest in the account orders it in writing to stop payment.³

CCU has a contractual right of setoff and a statutory lien on the member's shares and dividends, which it may enforce without further notice against any unpaid obligation. An auto loan, HELOC or negative balance can be taken from savings before a payable-on-death beneficiary receives anything.¹

The lien does not reach an IRA or similar tax-deferred account, credit-card debt under a card plan, or an account where the right of withdrawal arises only in a representative capacity. CCU states that an offset may reach government benefits, such as Social Security, deposited into the account.¹

If claims conflict, CCU may restrict the account and deny access to everyone until the claims are resolved to its satisfaction, close the account and mail the funds to the owner of record at the statement address, or interplead the funds.³

An attorney-in-fact's authority ends on the principal's death. CCU is protected for acting on the power of attorney until it has written notice of the death and time to act on it.³

The Share Savings account is the membership. Closing it closes the membership and with it access to the other accounts, so it is settled last.¹