What to do when an ESL Federal CU account holder dies

Sent by the institution on request.¹

Every ESL joint account is "Joint with Right of Survivorship," so the survivor keeps using the account and their own card.²

If the deceased person was the tax owner, the account must ultimately be closed, because ESL must keep reporting it to the IRS under their Social Security number. If they were the secondary owner, it can stay open once the new tax owner signs a new member account agreement.²

On an account with beneficiaries, funds are paid on request directly to the named beneficiaries. A jointly owned account with beneficiaries passes to the joint owner first; beneficiaries are paid "only upon the death of all account owners."²

For an account with no beneficiary and no joint owner, ESL asks for Letters Testamentary or Letters of Administration and asks you to "review for any limitations listed" on the certificate issued, because a limited certificate limits what ESL can release.²

An account with no beneficiary and no joint owner passes "to your estate or your heirs in accordance with applicable law".³

A certificate in one name with no beneficiaries is paid to the estate account, or to next of kin where certain conditions apply, without penalty. On a joint certificate the survivor may open a new certificate in their own name or cash it in; "in both situations, no penalties will be assessed."²

ESL closes the IRA "without a penalty from ESL" and moves it into an inherited IRA account. Designated beneficiaries then receive a letter detailing the disbursement options.²

ESL directs you to the Trust Agreement and the attorney settling the estate. Trusts managed by a trustee, co-trustee, successor trustee or trust administrator "generally require the services of an attorney".²

Before Letters are produced, ESL lets an appointed deputy examine and copy only papers about burial instructions, a deed to a cemetery plot, and proof of membership in a burial society. Full access follows review of Letters Testamentary, Letters of Administration, or a court order naming who may open the box.²

A single-titled ESL Visa credit card is blocked when ESL is notified, and its other authorized users are told in writing that they no longer have access. The card is closed once ESL receives the death certificate.²

A joint card can be retitled to the surviving owner, who becomes responsible for the balance. Removing an authorized user takes a written request to Card & ATM Operations.²

On a real-estate-secured loan or home equity line with no co-borrower, ESL writes to the estate with next steps. A home equity line with no balance is closed and the discharge documentation is mailed to the estate, which pays the discharge fee.²

Where there is a co-borrower, the loan transfers to them and the balance becomes their responsibility. On a loan with life insurance, ESL says: "Upon receipt of a certified Death Certificate, we will process the life insurance claim on the member's behalf."²

ESL asks for Letters Testamentary or Letters of Administration from the New York Surrogate's Court, and for a New York small estate accepts a Certificate of Voluntary Administration.²

ESL Investment Services accounts (also 800.814.5884)¹

ESL loans (also 800.842.4402)¹

Estates and trusts where it is engaged separately as corporate trustee or executor¹

ESL opens an estate account only where "the deceased member must have been an ESL member in good standing at the time of death." It does not open accounts, including estate accounts, for deceased non-members, even when family members or survivors are ESL members.¹

When notified, before any documents are reviewed, ESL immediately blocks a checking, savings or certificate account in the deceased member's name alone and deactivates any ESL Visa Check Card or ATM card the member held.²

ESL "highly recommend[s] that you destroy any cards belonging to your deceased loved one to prevent any unauthorized transactions."¹

Access to TEL-E$L, Online and Mobile Banking under the deceased member's credentials ends, and ESL Online Bill Pay accounts in their name are canceled. If bills still need paying, the Customer Case Specialist can set up a new Bill Pay under your name.²

ESL returns direct deposits from certain federal agencies received on or after the date of death: Social Security and SSI, Civil Service Retirement (OPM), the Railroad Retirement Board, Department of Defense Retirement (DFAS) and the Department of Veterans Affairs.^{1, 2}

For 10 days after the date of death, ESL may keep paying checks the member wrote on or before the date of death, unless a person claiming an interest in the account orders a stop payment.³

ESL does not stop the deceased member's automatic payments. The companies drawing them must be told to stop, or to set them up again under the new account owner's name.¹

If a beneficiary is under 18, $10,000 or more is paid only to the court-appointed guardian of the minor's property; under $10,000 may be paid to a guardian or to the minor's parents.²

"All legal powers of the Power of Attorney are considered void upon the death of the person who granted the powers."¹

ESL "may require anyone claiming a deceased owner's account funds to indemnify us for any losses resulting from our honoring that claim."³

A deceased owner's accounts, including a surviving joint owner's interest, remain subject to ESL's statutory lien and right of offset for debts the deceased member owed ESL, "even if the surviving owner did not consent to it."³