What to do when a Clearwater Credit Union account holder dies

On an individual account, the owner's interest passes to the estate or to a POD or trust beneficiary. Clearwater pays as the Account Card instructs, such as to a POD beneficiary.¹

Where there is no beneficiary designation, no probate case and no estate, Clearwater may choose to pay an heir, who then answers for passing the money on, or may hold the funds until it receives a court order.¹

An account with two or more owners is held with right of survivorship unless its Account Card says otherwise, so the balance belongs to the surviving owners. Their share stays subject to Clearwater's liens, set-off and any pledge the deceased owner made.¹

After the last owner dies, a POD account is paid to the named beneficiaries who are living, in equal shares. A beneficiary's share does not pass to another beneficiary when that beneficiary dies.¹

Withdrawing from a certificate before maturity forfeits all the dividends it has earned, and the penalty can come out of principal. The membership agreement leaves an early withdrawal to Clearwater's discretion and names no waiver at death.^{2, 1}

On a business certificate, the early withdrawal penalty does not apply when any owner of the certificate has died or become legally incapacitated.³

When a sole proprietor dies, the business account is paid under applicable law once the claimant presents qualification documents and any tax release that is required.³

If the custodian of a UTMA or UGMA account dies, Clearwater may freeze the account until a person with legal authority or a court order directs it. A successor custodian documents their authority to its satisfaction.¹

An IRA does not follow the account-level POD designation; it has its own agreement and beneficiary designation.¹

Life insurance, annuities and the no-cost $1,000 accidental death and dismemberment coverage offered to members⁴

Brokerage accounts, annuities, mutual funds and insurance through the advisors in two Clearwater branches⁴

A team that works with members who are struggling to repay a loan after a life event such as the loss of a loved one. Options can include a deferred payment, a new payment plan or debt consolidation.⁵

1-406-493-3500

After Clearwater learns of a member's death, it may keep paying checks and transfers the member authorized for ten days, unless someone claiming an interest in the account asks it to stop them.¹

Clearwater may require a person claiming a deceased owner's funds to indemnify it against losses from honoring the claim.¹

Money paid out after a death, to a joint owner, a beneficiary or anyone else, stays subject to Clearwater's lien and security interest. Its lien reaches POD and revocable trust accounts, and it can apply shares to a debt in default without court process.¹

The agreement is governed by Clearwater's bylaws, federal law and the law of the state where its administrative office sits, and legal action is brought in that county. Its administrative office is in Missoula, Montana.¹

An account with no transactions for 12 months is charged an inactive account fee of $5 a month, and funds left long enough to be presumed abandoned are sent to the state.^{6, 1}

Reconciliation and research costs $30 an hour with a one-hour minimum, and a levy or garnishment is $25.⁶

Membership is open to people who live, work, worship, attend school, volunteer or belong to a membership organization in 37 named Montana counties, and to relatives of existing members.⁷