How to name beneficiaries and fund a trust at California CU

Deposit accounts (checking, savings, money market and share certificates) take a pay-on-death (P.O.D.) beneficiary designation.¹

IRAs take the IRA beneficiary designation, with primary and contingent sections. An IRA Certificate can only be opened in a branch.¹

A trust can be named as beneficiary. The owner brings the Certification of Trust, the trust name and the date established.¹

A P.O.D. beneficiary must present proof of identity from a United States source satisfactory to the credit union, including a beneficiary overseas.²

Funds are distributed equally among the named P.O.D. beneficiaries.²

For payable-on-death accounts. Completed by the account owner, in a branch or through the Virtual Branch. Sent by the institution on request.^{1, 3}

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For IRAs. Completed by the account owner, in a branch or through the Virtual Branch. Sent by the institution on request.^{1, 3}

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Funds are first payable to any surviving owner of the account. A P.O.D. beneficiary is paid only after the death of all account owners, so a designation on a joint account does nothing while a joint owner is alive.²

If a P.O.D. beneficiary dies before the owners, that share is split equally among the surviving beneficiaries rather than passing to the deceased beneficiary's own heirs.²

A right of survivorship arising from the express terms of a joint account cannot be changed by a will.²

California Credit Union accepts both revocable and irrevocable trusts on deposit accounts and share certificates.⁵

IRAs cannot be retitled to a trust.⁵

HSAs cannot be retitled to a trust.⁵

Existing deposit accounts can be retitled into a trust without closing and reopening, so long as the same SSN or EIN is used.⁵

The credit union acts only as a depository institution. Its account agreement disclaims any duty to act as trustee or to verify the existence, validity or legality of the trust, or the trustees' powers.⁵

The credit union relies on the trustees' representations in the Certification of Trust rather than reading the trust, and reserves the right to require an attorney's certificate affirming the trust's existence and the trustees' powers.⁵

The trustees agree to indemnify the credit union against claims arising from the account, including claims arising from a failure to observe the trust's own rules about how many trustee signatures are required to bind it.⁵