What to do when a Tower FCU account holder dies
Report the death to Tower FCU's Member Case Settlement Department at 1-866-568-6937
After a member of Tower FCU dies, the Member Case Settlement Department manages the transfer of accounts. POD-designated and trust-owned accounts pass directly to beneficiaries. Accounts held solely in the member's name may require probate court documents—Letters Testamentary or Letters of Administration—before funds can be released.
Begin by calling Tower FCU at 1-301-497-7000. You will need the deceased's full name, account numbers, and the death certificate to get the process started.
Death claim process
Here is the step-by-step death claim process at Tower FCU:
Filing a claim
Required Documents
- Certified copy of the death certificate
- Copy of the driver's license or state-issued picture ID, for each joint owner and payable-on-death payee who is not known to Tower
- Letter of Administration, for an account with no joint owner and no payable-on-death payee
- Copy of the personal representative's driver's license or state-issued ID, for an account with no joint owner and no payable-on-death payee
- Beneficiary Payment Election form (Form 2321), for a Tower IRAAscensus mails the form to the beneficiary.
What happens to each kind of account8
- Account in one name
With no joint owner and no payable-on-death payee, Tower states the funds belong to the deceased member's estate, including savings, club, checking, money market, and share certificate accounts. Automatic transfers in or out of an individual account are returned.1
- Joint account with survivorship
Surviving joint owners can keep using the account (their own debit card, checks and ACH, deposits, wires, and some Digital Banking services) for up to 90 days. The account is closed in 90 days and the funds go to the surviving joint owners in equal shares.1
- Payable-on-death account
A payable-on-death payee has no authority over the account other than the funds in it, and all services for payees are discontinued immediately. The account is closed in 90 days and the funds go to the payees in equal shares.1
- Trust account
When the last Trustor/Grantor of a Revocable Living Trust account dies, the trust becomes irrevocable and the trust account is closed.1
- Certificate of deposit
Share certificates are closed without a penalty once the documentation requirements are met.1
- IRA
IRAs are closed without a Tower Federal Credit Union penalty. The beneficiary's form offers a lump sum, a transfer to their own IRA, a transfer to an inherited IRA elsewhere, or an inherited IRA at Tower with or without scheduled payments.1
- Credit card
A sole-applicant card is closed immediately, no interest accrues on the date-of-death balance, statements continue until it is paid, and the balance may be collected from a deposit account. A card with a surviving co-applicant is also closed; the co-applicant must requalify for a new card.1
- Loan
Tower checks for Debt Cancellation coverage and applies any proceeds to the loan balance as of the date of death; deposit balances may also be applied. Surviving borrowers or the estate repay the rest. A mortgage or auto loan with a co-borrower who is a Tower member is transferred to that member's account.1
On a HELOC, if the primary member dies the co-borrower must requalify; a co-borrower who declines and is a Tower member has the loan transferred to them for repayment only. If the co-applicant dies, the primary does not requalify. A single-owner Personal Line of Credit is closed.1
Accounts handled elsewhere2
What Tower FCU's agreement and guidance say9
- What it does when notified
Tower often receives notices from the U.S. Government that a member is deceased. Once it receives notice, it begins the settlement process on the account, and the deceased member's debit card is deactivated immediately.1
- Payments after the death
Tower may honor transactions until it is notified of a death. After notice it may pay drafts or other payments the deceased authorized for ten (10) days unless a person claiming an interest in the account instructs it to stop payment.2
- Indemnity a claimant may have to give
Tower may require anyone claiming a deceased owner's funds to indemnify it.2
- Powers of attorney
A Power of Attorney or a designated Convenience User on the account is voided upon the death of the principal.1
- Deposits after the death
Federal payments received after the date of death (such as Social Security, VA, Railroad Retirement, OPM, and DFAS) are returned to the U.S. Treasury and must be settled with the paying agency. Tower does not contact the agency.1
- Debts owed to the institution
Funds go to the surviving joint owners, the payees or the estate once any open loans have been satisfied. Tower's Collection Department may collect from the share accounts for any outstanding consumer loan or credit card, and a single-owner Personal Line of Credit balance may be collected the same way.1
- Dormant and unclaimed accounts
Remaining funds are not disbursed until the required documents are received. If they are not received in a timely manner, the funds may be escheated to the State of Maryland.1
- What it says about taxes
Tower reports interest to the IRS under the deceased member's Social Security number until the account is closed.1
- Membership
Tower opens an estate account on request from an Executor/Personal Representative when the deceased person was a Tower member and a Maryland resident at death, or when all estate beneficiaries are Tower members before the account is opened and the deceased person was a Maryland resident at death.1
Accounts are closed within one to three months and should not stay open more than six. Joint and payable-on-death accounts are closed in 90 days.
Frequently asked questions
Tower's Deceased Member Guide states that deceased member accounts are closed within one to three months and that an account should not remain open more than six months. Joint accounts and POD accounts are closed in 90 days, and surviving joint owners can keep using the account until then. Interest is reported to the IRS under the decedent's Social Security number until the account is closed. Remaining funds are not paid out until Tower receives the required documents, and if they are not received in a timely manner the funds may be escheated to the State of Maryland. The Member Case Settlement Department takes reports at 301-497-7000 or by mail at 7901 Sandy Spring Rd, Laurel, MD 20707.
For a limited window. Tower's Membership and Account Agreement ("Death of Account Owner") says Tower may honor transactions until it is notified of the death, and that after notice it may pay drafts or other payments the deceased authorized for ten (10) days, unless a person claiming an interest in the account instructs it to stop payment. Tower may require anyone claiming a deceased owner's funds to indemnify it. Separately, any federal payment (such as Social Security, VA, Railroad Retirement, OPM, or DFAS) received after the date of death is returned to the U.S. Treasury and must be settled directly with the paying agency.
Yes. Tower's Deceased Member Guide states that its Collection Department may reserve the right to collect from the share accounts for any outstanding consumer loan or credit card on the decedent's account, and that funds go to survivors, POD payees, or the estate once any open loans have been satisfied. Tower first checks whether the member had Debt Cancellation coverage and applies any proceeds to the balance as of the date of death. A sole-applicant credit card is closed immediately and no interest accrues on the date-of-death balance. Loan questions after a death, including from a mortgage Successor in Interest, go to 866-538-6937.
Tower opens Revocable Living Trust accounts on request from a Trustee/Grantor. Its Deceased Member Guide states that when the last Trustor/Grantor dies, the trust becomes irrevocable and the trust account will need to be closed. Tower directs Revocable Living Trust account questions to its Certificate Department. Its account agreement also lets it refuse a trust, will, or court-ordered instruction it believes exposes it to claims, or require indemnification or a bond first.
Tower FCU's Member Case Settlement Department can be reached by phone at 1-866-568-6937 for questions throughout the claims process.
Sources
(2)·
Data sourced from Tower FCU primary sources (29 pages reviewed). How we research.
Tower FCU death claims support
Member Case Settlement Department
Phone
Toll-free
Loan questions after a death
Tower Wealth Management (LPL Financial)
Mailing address
Website
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