What to do when a MSUFCU account holder dies

Completed by a payable-on-death beneficiary. Available to download. Must be notarized.¹

Completed by the personal representative. Available to download.¹

Completed by the successor trustee. Available to download.¹

Ownership stays with the surviving owners under Sec. 4(c) of the agreement. The survivor can take a check, or open their own membership and have the funds deposited there.²

A surviving joint owner who is not an MSUFCU member has six months to establish membership or remove the funds. After that, MSUFCU closes the account and pays them out.²

Death is an event of default under Sec. 11 of the Credit Card Agreement. The card agreement gives MSUFCU its own security interest in the cardholder's share and deposit accounts, and that is how a Visa balance is collected.³

Administering or settling a trust or an estate (ext. 7280)^{2, 1}

Legacy American Eagle Bank accounts until the November 7, 2026 conversion^{2, 1}

Legacy American Eagle Bank accounts until the November 7, 2026 conversion^{2, 1}

Under Sec. 50, MSUFCU may honor checks and accept payments or transfers drawn by the member until 10 days after it learns of the death. Under Sec. 3, it may process an owner's or their agent's payments, transfers and withdrawals until it is notified.²

The 10-day window runs from the date MSUFCU learns of the death, not the date of death, so an automatic payment keeps drawing on the account until the death is reported.²

Under Sec. 50, MSUFCU "requires any person claiming an interest in the deceased member's accounts to provide us proof of their right to the account and may require that person to indemnify us from any losses incurred as a result of honoring that claim".²

Sec. 31 lets MSUFCU apply funds in any account the member held, including Social Security funds, to any obligation owed to it. It does not apply to credit card debt, or to IRAs, HSAs and Coverdell ESAs.²

Sec. 32 gives MSUFCU a statutory lien on the member's shares and dividends, and Sec. 33 a security interest in the member's property in its possession, except debt secured by the primary residence. Both exclude IRAs, HSAs and Coverdell ESAs.²

Only the remaining funds are paid to the payable-on-death beneficiaries, the surviving joint owner, the trust or the estate. MSUFCU has no duty to distribute anything until every setoff, security interest and pledge is satisfied.^{2, 1}

Under Sec. 50, MSUFCU may hold Veterans Affairs, Social Security or Railroad Defense Finance and Accounting Service deposits made in the member's name after the date of death until it receives a Notice of Reclamation or confirmation of ownership.²

MSUFCU may also return those funds to the payor voluntarily, with or without a Notice of Reclamation or a demand.²

Legacy American Eagle Bank accounts are not yet on MSUFCU systems. The system conversion is November 7, 2026; before that date, an heir settling an American Eagle account works through the former American Eagle offices.^{2, 1}