How to name beneficiaries and fund a trust at Connex CU

A POD designation attaches to the specific account, not to the membership. Each account is designated separately, and a designation does not carry across accounts or to accounts opened later.¹

Under section 4 of the agreement, a POD or trust beneficiary designation "shall not apply to Individual Retirement Accounts." An IRA carries its own separate beneficiary designation.²

The Coverdell ESA carries its own separate beneficiary designation.²

A trust can be named as a POD beneficiary, identified by its exact name, the date of the trust and its EIN.³

An IRA can name a trust on its own beneficiary designation.²

A Coverdell ESA can name a trust on its own beneficiary designation.²

Unless state law provides for different ownership or Connex permits and documents otherwise, the surviving beneficiaries own the funds jointly in equal shares without rights of survivorship. The standard designation has no percentage allocation.²

All account owners sign the Account Change Card. Section 3b of the agreement lets Connex require the written consent of all owners for any change to an account.²

Section 4 of the agreement makes the POD designation an instruction documented on the Account Card, so a signed record is required. A phone call alone does not change a beneficiary.²

Completed by all account owners. Sent by the institution on request.^{3, 1}

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For IRAs. Sent by the institution on request.²

Under section 4 of the agreement, a POD or trust account is payable to the owners during their lifetimes and, when the last account owner dies, to all surviving POD or trust beneficiaries.²

Under section 3a, a joint account includes rights of survivorship unless the Account Card says otherwise, so on a joint account the POD beneficiaries take nothing until the last owner dies.²

Under section 4, Connex is not obligated to notify any beneficiary of the existence of any account or of the vesting of the beneficiary's interest, except as otherwise provided by law.²

Under section 3a, a surviving owner's interest remains subject to the credit union's statutory lien for the deceased owner's obligations (section 20), so an unpaid Connex loan can reduce what a survivor or beneficiary receives.²

Under section 4, the POD and trust designation paragraph does not apply to an account held on behalf of or in the name of a trust. A trust-titled account is owned by the trust outright, not paid out to beneficiaries by the credit union.²

IRAs cannot be retitled to a trust.²

A Coverdell ESA cannot be retitled to a trust.²

Sent by the institution on request.^{2, 1}

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Under section 27 of the agreement (Special Account Instructions), Connex may refuse instructions for a trust, will or court-ordered account arrangement that it believes could expose it to claims, lawsuits, expenses, liabilities or damages.²

Under section 27 of the agreement, Connex may require you to indemnify it, post a bond or provide other protection against instructions it believes could expose it to claims, lawsuits, expenses, liabilities or damages.²