What to do when a KEMBA account holder dies

An account with no payable-on-death payee, no joint owner and no trust title belongs to the estate. It waits on Letters or a probate court order relieving the estate from administration.¹

A joint account carries rights of survivorship unless the membership application or KEMBA's online application process says otherwise (section 3(a)).²

A joint account is updated when the death certificate is presented.¹

Where the membership application or KEMBA's online application process says a joint account has no survivorship, the deceased owner's interest passes to the estate (section 3(a)).²

Where more than one payee survives, they take the funds jointly in equal shares without rights of survivorship, unless Ohio law provides otherwise or KEMBA documented a different split (section 4).²

KEMBA has no duty to notify a payable-on-death payee, and the designation does not apply to a trust-titled account (section 4).²

The named payee presents a certified death certificate and photo ID.¹

On the death of one trustee, all rights belong to the surviving trustee or trustees, and the trust documentation, not KEMBA, names the successor trustee. Any trustee may act alone, and the settlor of a revocable or living trust must be a member (section 5).²

A payable-on-death designation never applies to an IRA; only the payee named on the IRA beneficiary designation form may claim it (section 4). Section 23 exempts IRAs from KEMBA's statutory lien.²

KEMBA does not pay insurance benefits. A question about GAP coverage on a deceased member's KEMBA auto loan goes to Member Services.³

Investment accounts held through KEMBA Wealth Management, claimed through the wealth management office¹

"We may honor all transfer orders, withdrawals, deposits, and other transactions on an account until we know of a member’s death or adjudication of incompetence." (section 33)²

"Even with such knowledge, we may continue to pay checks or drafts drawn on the deceased member’s account for a period of ten days after the member’s death unless we receive instructions from any person claiming an interest in the account to stop payment on the checks or drafts." (section 33)²

Section 33 also covers adjudication of incompetence. Under section 9, KEMBA deals with an attorney-in-fact only if it approves the form of appointment and supporting documentation.²

Section 23 pledges every share, dividend, deposit and interest in all accounts as security for the member's obligations, except obligations secured by the principal residence. Once the member is in default, KEMBA has a statutory lien and right of offset, and may freeze an account instead of offsetting at once.²

"A surviving owner’s interest is subject to the Credit Union’s statutory lien for the deceased owner’s obligations and to any security interest or pledge granted by a deceased owner, even if a surviving owner did not consent to it." (section 3(a))²

KEMBA may require anyone claiming funds from a deceased owner's account to indemnify it (section 33). It may also refuse a special account instruction or demand indemnity or a bond (section 30).²

The Membership Agreement's bylaw requirement makes a $5.00 membership share in Primary Savings a condition of membership; it stays in Primary Savings until the last account is closed.²

Under section 40 on financial exploitation, KEMBA may delay a disbursement or deny a change in ownership or beneficiaries.²