What to do when a Logix account holder dies

Sent by the institution on request.¹

Funds in an individual account with no beneficiary and no survivor pass to the deceased member's estate, and the executor or administrator provides Letters Testamentary or Letters of Administration.¹

The surviving joint owner keeps access. Under the "Transferability" clause, a transfer by operation of law is not binding on Logix until it has received sufficient documentation and an updated New Account Application has been executed.²

On the death of all account holders named as trustee of a Totten Trust (payable-on-death) account, Logix distributes the funds equally to the designated beneficiaries; unequal percentage shares are not available. Each named beneficiary presents government-issued ID and the death certificate.¹

On the death of all account holders named as trustee of a Written Trust account, the successor trustee executes a New Account Application and a Certification of Trust Affidavit identifying the new trustees before Logix relies on that trustee's instructions. Logix will not act as trustee or successor trustee.¹

The early withdrawal penalty is waived when "the withdrawal is made following the death of the Certificate Account owner," so an unmatured certificate can be closed without losing dividends.¹

Any withdrawal from an IRA or Education IRA requires a completed, signed IRA form. A required minimum distribution from an IRA Certificate is also exempt from the early withdrawal penalty.¹

Funds in a UTMA or Coogan account are the minor's property and do not pass through the deceased custodian's or trustee-parent's estate. On a custodian's death Logix takes instructions from the named successor custodian, who must be a Logix member.¹

Funds in a Representative Payee account belong to the benefit-payment beneficiary, not to the payee. On a payee's death the Social Security Administration or the Department of Veterans Affairs appoints a replacement before the account changes hands.¹

Under the "Death of Account Holder" clause, loans of the deceased member may become due and payable.²

Investment and insurance accounts held through Logix Financial Services, with LPL Financial or the issuing carrier¹

Vehicle loan payoffs and lienholder questions¹

Each account holder agrees to notify Logix immediately upon the death of any other account holder.²

Under the "Death of Account Holder" clause, once the death is certified no further deposits are accepted, and the account is not released until Logix has satisfactory documentation to determine the proper distribution and "a reasonable opportunity to act on such information."²

Once the death is certified, no checks are paid on the account, and there is no grace period for the deceased member's outstanding checks.²

Logix holds a statutory lien and right of setoff on savings, money market, checking and certificate accounts (IRAs excluded) for any outstanding obligation of the deceased member. It can enforce it without a court judgment and without further notice.²

Logix is not liable for dishonoring an item that bounces because it enforced the lien.²

Under the "Power of Attorney" clause, Logix is not liable for transactions an agent makes for a deceased account owner unless it has received written notice that the principal is deceased and has had time to act on it. A revocation is not effective until Logix receives written notification.²