Compliance Question of the Week

If we open an estate account, do we qualify the executor or the deceased member for eligibility?

In Oregon, state-chartered credit unions establishing an estate account require that the deceased was a credit union member or was otherwise eligible for membership.

In Washington, state-chartered credit unions can open the account as long as either the executor or the deceased person is in their field of membership. The credit union should rely on the executor’s statement to determine the proper taxpayer identification number (TIN) for the account. Usually, this is either the decedent’s Social Security number (SSN) or a separate TIN assigned to the estate. The account should not be recorded under the executor’s SSN because the funds do not belong to him or her.

Federally-chartered credit unions need either the deceased to have been a member of the credit union prior to their death or for all beneficiaries of the estate account to be members.

Interested in learning more?

An upcoming training presented by the Northwest Credit Union Association (NWCUA) promises to help credit unions prepare for and address questions about account administration. The Account Administration Seminar is a one-day training scheduled for April 4 in Federal Way, Wash., and for April 5 in Tigard, Ore. It will cover the key aspects of opening, maintaining, and closing deposit accounts, including the types of account ownership and how to protect credit unions in disputes among owners and other claimants.

The Account Administration Seminar will also discuss the basic rules governing forged and stolen checks and non-sufficient funds, as well as how the key federal regulations apply to deposit account operations. Hal Scoggins, an attorney with the law firm of Farleigh Wada Witt, in Portland, Ore., will facilitate the training. With a practice that focuses on state and federal regulatory compliance, deposit and lending operations, contract and business matters, corporate governance, CUSOs, and all other aspects of financial service delivery, Scoggins has been providing legal advice to credit unions since 1991.

Registration information for the Account Administration Seminar is available on the NWCUA’s website. Click here for the Federal Way, Wash. seminar or here for the Tigard, Ore. seminar.

Related Links

NCUA Opinion Letter 92-0434

 

Questions? Contact the Compliance Hotline: 1.800.546.4465, compliance@nwcua.org.

Posted in Compliance, Compliance News, Events, Federal.