How to name beneficiaries and fund a trust at LGE Community CU

A POD designation is available on deposit accounts: checking, savings, money market and certificates.¹

IRA beneficiaries are named in Part 5 of the IRA Application, not on deposit-account paperwork. The IRA designation is separate from a deposit-account POD designation.²

A trust can be named as beneficiary; LGE records the full legal trust name, date established, and trust EIN or SSN.¹

A beneficiary who is not of legal age when the account becomes payable is paid by a check made out to the beneficiary and delivered to the person who presents themselves as that beneficiary's parent or legal guardian.¹

Primary and contingent beneficiaries are named with percentage allocations.¹

On the IRA Application the total percentage in each tier must equal 100%. If multiple beneficiaries are listed with no percentages, LGE deems them to own equal shares.²

Any owner may change a designated beneficiary during their lifetime by written direction to LGE.¹

The spousal consent block in Part 6 of the IRA Application is framed for community or marital property states, and applies if the IRA owner resides in, or the trust is located in, such a state.²

For IRAs. Completed by the IRA owner; beneficiaries in Part 5. Available to download.²

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Under the Beneficiary Account clause, the account is payable to the owners during their lifetimes and, on the death of the last owner, to the beneficiaries "designated by your Membership Application".¹

Either owner may change a designated beneficiary during their lifetime by written direction to LGE.¹

Each new IRA designation cancels all previous ones, and no beneficiary consent is needed to revoke one.²

A beneficiary's interest is subject to LGE's right of set-off and to any pledge of the funds. The funds are payable to the designated beneficiaries "unless subject to our right of set-off or a pledge of the funds, in which case all sums in the account(s) will belong to us up to the amount of the obligation(s) owed".¹

Beneficiary accounts are "without rights of survivorship" among the beneficiaries. If all named beneficiaries die before the owners, the funds are paid to the estate of the last surviving owner.¹

On an IRA, a beneficiary's share passes pro rata to the surviving beneficiaries in the same tier when that beneficiary dies first. The estate receives the IRA only if every primary and contingent beneficiary is gone.²

If a beneficiary is not of legal age when the account becomes payable, LGE makes the check payable to the named beneficiary and delivers it to the person who presents themselves as that beneficiary's parent or legal guardian, or as otherwise allowed by applicable law, and is indemnified and released on that payment.¹

An IRA beneficiary designation is effective only when filed with LGE during the owner's lifetime on a form LGE provides or accepts.²

LGE opens trust accounts on the Trust Membership Application, which recognizes exactly three trust types: Revocable, Irrevocable, or Qualified Income (QIT). There is no other box.⁴

An IRA cannot be retitled to a trust. A trust can be named as the IRA beneficiary in Part 5 of the IRA Application.²

For trust accounts. Completed by every trustee, co-trustee and grantor, who sign the trustee certification. Available to download.⁴

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Trust accounts are opened in branch or by mail, not online. Existing accounts may need to be closed and reopened under the trust title.⁴

The signing trustees represent and warrant their authority to legally bind the trust and agree to fully indemnify and hold LGE harmless for any claim or liability arising from LGE relying on that authority.⁴

The signing trustees certify that all Trustees, Successor Trustees and Beneficiaries are in LGE's field of membership, and each signer states their own membership eligibility on their identity block.⁴

Successor trustees are covered by the certification the signing trustees make that all Trustees, Successor Trustees and Beneficiaries are in LGE's field of membership.⁴

The form states that LGE uses the EIN or SSN entered for all governmental reporting including the IRS, that the selection may affect taxation and estate or probate issues, and that LGE provides no advice or recommendation on it and says to consult legal counsel.⁴

Under the Membership and Account Agreement, statements and account information on a trust account go to the trustees.¹

Beneficiary designations and trust retitling for investment accounts held at LPL Financial⁵