What to do when a Redstone FCU account holder dies

The POD beneficiary is entitled to the funds upon proof of the owner's death and the beneficiary's identification, after Redstone is paid any debts the owner owed it. Several beneficiaries take equal shares without right of survivorship.¹

The surviving owner or owners own the funds. If the primary owner died and joint owners remain, the account is closed and the joint owners open a new account under a new number, if eligible; any POD designation on that account is void.¹

On an individual account with no POD designation, or the last surviving joint owner's account, the funds go to the owner's estate and can be claimed by the legal representative or claimant.¹

Redstone's bylaws allow the share account of a deceased member, other than one held in joint tenancy with another member, to be continued until the close of the dividend period in which administration of the estate is completed.²

An IRA passes under its separate IRA beneficiary designation.¹

Share certificates may be withdrawn without an early-withdrawal penalty after the death of any owner.^{3, 4, 5}

Redstone offers Estate Checking for representatives of a decedent's estate ($1 to open, non-dividend) and Estate Savings ($5 to open, no minimum to maintain or earn dividends).^{1, 6}

A fiduciary account may be opened, at Redstone's option, by an executor or administrator named under court orders. Redstone may request any documents it deems necessary and need not permit any withdrawal until it receives them.¹

Only the fiduciary may be named, no joint owners or beneficiaries may be added, and funds cannot be pledged as security for a loan. Redstone may limit the number of fiduciaries per account and will not let a fiduciary who has caused it a loss open or join an account.¹

Investment accounts held through LPL Financial⁷

The guide lists the documents families gather and covers Social Security, VA, and SGLI survivor benefits. It is available at any branch.⁸

The Membership Agreement requires notice of an owner's death. Until Redstone knows of the death and has a reasonable opportunity to act, it may keep accepting, paying, and collecting items on the account.¹

Even after it knows of the death, Redstone may for ten days after the date of death pay or guarantee checks drawn on or before that date, unless a person claiming an interest in the account orders it in writing to stop payment.¹

If a depositor such as a government agency demands the return of sums directly deposited during the month of or after the death of an account holder, Redstone must honor the demand and may debit the account for all amounts returned.¹

After any owner's death, Redstone may set off the deceased owner's debts against a joint account or a POD account up to the full balance at the date of death, including deposited Social Security and other public benefit funds to the maximum extent the law permits.¹

Redstone will not set off against an IRA or similar tax-deferred account.¹

An administrator of the estate of an owner who died may be treated as an owner for access to historical account information, including statements and transaction information.¹

An Estate Checking account is considered dormant after 180 days with no member-initiated activity and may then carry the $10 monthly Dormant Checking Fee.⁶