What to do when a Navy Federal account holder dies

It has to stop, and payments that arrive after the date of death generally have to go back. Navy Federal's Survivor's Guide to Account Settlement tells survivors that government benefit overpayments must be returned and points them to the U.S. Treasury Green Book (https://tfx.treasury.gov/reference-books/green-book) for the reclamation rules — meaning the paying agency can reclaim post-death deposits from the account. Contact each payor directly to stop the deposits: Defense Finance and Accounting Service at 1-888-332-7411, the Department of Veterans Affairs at 1-800-827-1000, the Social Security Administration at 1-800-772-1213, and the Office of Personnel Management at 1-888-767-6738. Do not spend a benefit payment that posted after the date of death; the Survivor Support case specialist at 1-800-883-3323 will work through the direct deposits with you.

It depends on how the account was held and whether the survivor qualifies for membership. A joint owner with survivorship who is eligible for membership on their own may retitle a savings, checking, or MMSA into their own name — keeping the same account number, checks, debit card, and Bill Pay payees — or simply close it. A certificate held by a joint owner with survivorship or by a POD beneficiary can be transferred at the same rate and terms, or cashed out with no early withdrawal penalty. A POD beneficiary who is not eligible for membership can still be paid out; the funds are disbursed rather than kept in a Navy Federal account. Accounts under $200 need no contact at all — Navy Federal mails a check made out to the estate.

Sometimes. The Estate Account brochure (Form NFCU 406) says you are eligible if you are the qualified administrator for a deceased Navy Federal member. If the decedent was not a member, you can still open an estate account provided the decedent was eligible for membership on the date of death and all beneficiaries of the estate are Navy Federal members. You will need the letters of administration granted by the probate court appointing you, an EIN for the estate, and the Estate Account Application (downloadable at https://www.navyfederal.org/estate or by calling 1-888-842-6328). One hard limit to plan around: Navy Federal does not offer blocked, restricted, or court-monitored accounts, even with a court order — so if the judge orders a restricted estate account, it cannot be opened here.

Navy Federal's own brochure (NFCU 1215e) explains that IRAs cannot be designated as POD Accounts or Deposit Trust Accounts because an IRA is already a trust account in its own right, regulated by federal rules and insured separately by the NCUA. You can still name a trust as the IRA's beneficiary. That designation is made on Form NFCU 584 (Designation of Beneficiaries for IRA Plan) — and it does not use the POD address. Form NFCU 584 faxes to 703-206-4250 and mails to PO Box 3001, Merrifield, VA 22119-3001, while Form NFCU 250 for POD accounts faxes to 703-206-3724 and mails to PO Box 3002, Merrifield, VA 22116-9887. Sending the IRA form to the POD address is a common source of delay. If an IRA has no designated beneficiary when the member dies, it transfers to an Estate account.