How to name beneficiaries and fund a trust at Navy Federal

A POD designation is available on savings, checking, MMSA, Jumbo MMSA and certificate accounts.¹

A certificate opened online can carry a POD designation set at opening, without a separate form.²

An IRA cannot be a POD account. Navy Federal states that IRAs are already considered trust accounts in their own right.³

IRA beneficiaries are named on Form NFCU 584 instead of Form NFCU 250. Besides its return address, the form can be submitted by eMessage or at a branch.⁴

Coverdell ESA successor beneficiaries are named on Form NFCU 592.⁵

Digital Investor brokerage beneficiaries are named on the NFIS Transfer on Death (TOD) Form (NFCU 702), not on Form NFCU 250.⁶

Form NFCU 250 accepts a natural person as a primary beneficiary.¹

Form NFCU 250 accepts a charitable organization or other non-profit entity recognized under the Internal Revenue Code.¹

Form NFCU 250 accepts a legal trust, named with its ITIN or EIN.¹

Each beneficiary is given a percentage, and the percentages total 100 percent. Contingent beneficiaries are optional and go in section H.¹

When a legal trust is a named primary beneficiary, contingent beneficiaries receive nothing unless the trust was properly terminated or revoked before the primary member's death (section I).¹

The form must be signed by every primary and joint account owner for it to take effect.¹

A married IRA holder in a community or marital property state who names a primary beneficiary other than the spouse needs the spouse's signature on Form NFCU 584.⁴

Completed by every primary and joint account owner. Available to download.¹

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For IRAs. Available to download.⁴

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For coverdell education savings accounts. Available to download.⁵

For investment accounts. Available to download.⁶

"Joint Account - With Survivorship" passes the deceased owner's interest to the surviving joint owner, and the POD beneficiaries receive the funds only after the death of all account holders.¹

"Joint Account - No Survivorship" pays the named beneficiaries on the primary member's death regardless of whether the joint owner survives. If no survivorship option is selected, the accounts are designated Joint Owner with Survivorship.¹

Savings, checking, MMSA, Jumbo MMSA and certificates qualify for a Deposit Trust Account.⁷

IRAs cannot be Deposit Trust Accounts.⁷

Available to download.⁷

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Legal trusts are set up outside of Navy Federal, and a legal trust is required before a Deposit Trust Account can be opened.³

Form NFCU 678A is used both to open new accounts and to reassign existing accounts to the legal trust.⁷

Navy Federal creates a separate Access Number for the legal trust.⁷

Only the trustees designated in the legal trust agreement can access the account.³

The account is opened in the name of the trust with the grantor's SSN or an EIN.³

Form NFCU 678A states that NCUA generally requires all grantors or trustors, or all trust beneficiaries, to be members of Navy Federal. The trustee certifies this on the application.⁷

Reassigning the membership savings account to the trust requires a new membership savings account under the member's personal Access Number.⁷

The Estate Planning page states: "Grantors and beneficiaries of trust must be Navy Federal members."⁸

A trust-titled account is closed after a death with the Deposit Trust Account Closure for Survivors (Form NFCU 678CS). Only a currently serving trustee may request the closure.⁹

A trustee who is not a member includes verified trust documents showing they are the successor trustee, plus a copy of a government-issued photo ID.⁹