What to do when a LGE Community CU account holder dies

With no payable-on-death beneficiary and no joint owner, the executor or administrator presents Letters Testamentary or Letters of Administration from the Georgia probate court.¹

The surviving owner presents a certified death certificate to remove the deceased owner. The survivorship interest is still subject to LGE's set-off.^{1, 2}

Under the Beneficiary Account clause, funds are payable to the designated beneficiaries unless subject to LGE's set-off or a pledge. Beneficiaries have no rights of survivorship among themselves, so if every named beneficiary died before the owners, the funds go to the estate of the last surviving owner.²

LGE has no obligation to pay a beneficiary until it is notified of the death by receiving a valid death certificate.³

A beneficiary who died before the owner has their share reallocated pro rata among the surviving beneficiaries in the same tier. The IRA goes to the estate only when no designated beneficiary remains.³

Investment accounts through LGE Investment Group are held at LPL Financial and follow LPL's own claims procedure, not the credit union's.⁴

Investment accounts held through LGE Investment Group, custodied at LPL Financial⁴

The agreement's death clause opens: "Please notify us promptly if you learn or suspect an account owner or signer has been declared incompetent by a court or other legal authority, or has died."²

Once LGE receives proper notice, it may freeze the account until it receives documents verifying the death and instructions for the remaining funds.²

LGE may pay, without inquiring, any item the account owner authorized before death, so checks the member wrote can still clear after the date of death.²

LGE may return or reverse deposits, such as a Social Security or pension payment credited after the death. If LGE releases funds after the death and then has to pay a government tax or reclamation claim as a result, the estate must reimburse LGE.²

LGE may apply funds in the account to any debt the account owner owes LGE before recognizing the rights of a surviving joint owner or anyone else to the remaining funds. An unpaid LGE car loan, Visa balance, signature loan or HELOC comes out of the deposits first.²

Under the Statutory and Consensual Liens on Shares clause, LGE holds a lien on all funds in all joint and individual share accounts, whatever their source, securing every obligation the owner has to LGE. The agreement says the lien has priority over all other claims.²

For consumer and sole proprietor accounts, LGE may comply with court orders and take direction from affiants, court-appointed representatives, guardians or conservators from the member's state of residence, even if the account was opened elsewhere. It may require more documentation first.²

For a minor payable-on-death beneficiary, LGE makes the check payable to the beneficiary and delivers it to the person presenting as the parent or legal guardian, and is released and indemnified on that payment.²