What to do when a Mountain America account holder dies

Funds are paid according to the express instructions on the Membership Application (the payable-on-death beneficiary). With no express beneficiary, they are paid to the estate.¹

The named beneficiaries are paid. Several beneficiaries take as joint tenants without rights of survivorship, and a beneficiary who was not living when the account became payable receives nothing, nor do that beneficiary's heirs.²

The survivor keeps the funds by right of survivorship, but the credit union may not release funds to a survivor until all required legal documents are delivered to it.²

With no payable-on-death beneficiary and no joint owner, the funds are paid to the member's estate. The estate's representative produces Letters Testamentary, Letters of Administration or a small-estate affidavit.²

Under the bylaws, the share account of a deceased member, other than one held in joint tenancy, may be continued until the close of the dividend period in which the administration of the estate is completed.³

The successor trustee produces the trust agreement or Certificate of Trust, the death certificate, and trustee identification.²

If the deceased person was the custodian on a UTMA/UGMA account, the credit union may freeze that account until it receives a court order or instructions from a person authorized by law.²

The credit union may grant a premature withdrawal with no penalty, or a reduced penalty, on the owner's death or legal incompetence. Ask for this waiver if a certificate has to be broken to fund the estate.²

An auto-renewing certificate has a ten-calendar-day grace period after maturity for withdrawal without the early withdrawal penalty, which ends at once on any modification or withdrawal. Dividends credited into a certificate become principal and cannot be withdrawn separately before maturity.²

Where no IRA beneficiary was named, the IRA has to go through probate.²

Payoff quotes and payoffs on a deceased member's loan²

Investment accounts, which are held at LPL Financial⁴

Accounts from the Albuquerque, New Mexico branches, transferred to Sunward on March 1, 2025²

Life insurance benefits tied to a Mountain America membership²

Consumer Loan Servicing (844-852-2405) or a branch gives the payoff quote on a loan.²

For accounts that moved to Sunward Federal Credit Union, Mountain America's service center still retrieves the pre-transfer statements and tax documents.²

The credit union may continue to honor all transactions on the account until it receives actual notice of the death.¹

The agreement obliges the member to notify the credit union immediately of the death of anyone receiving federal or state retirement, welfare or benefit payments by electronic deposit.¹

After actual notice of the death, the credit union may keep honoring transactions the member had authorized.¹

If the credit union has to reimburse the government for a benefit payment deposited after the death, it may deduct the returned amount from any of the accounts and demand repayment of any shortfall.¹

The credit union can require any person claiming the funds to indemnify it against losses from honoring that person's order, and may require satisfactory documentation of any right, claim or fact relating to the payment.¹

Payment is subject to the credit union's lien: all debts the member owed it are paid out of the accounts before anything reaches a joint owner, beneficiary or estate. It may place an administrative freeze on the accounts, without notice, to protect that right.¹

If the owners are in dispute, or the credit union receives inconsistent instructions, including a claim asserted by a personal representative, it may suspend or terminate the account and require a court order or a written agreement before acting.¹