Compliance Question of the Week

We have an account where the deceased member had named two minors as beneficiaries using a POD designation. Do I make the check payable to the children, or should I pay it to their parent or guardian?

When a credit union finds itself indebted to a minor, such as they are named as a payable-on-death beneficiary (POD) on an account of a deceased minor, you should make the payment to the minor’s parent or legal financial guardian. The minor’s receipt of the funds would not bind the minor, and it could be voided when the minor reaches the age of majority (18), so you really shouldn’t make the payment to the minor directly. It could mean you would eventually have to make the payment a second time.

One of the suggested ways to make out the check would be to “Momma Doe as guardian for Baby Doe.”


Questions? Contact the Compliance Hotline: 1.800.546.4465,

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