Beneficiary FAQs

A beneficiary can be any individual, organization, or trust designated to receive assets upon the death of the account owner. Naming a beneficiary on your account can be a great option if you want to set up an easy way for assets in your account to transfer seamlessly to the beneficiary of your choosing.  

Identification and contact information must be provided when designating a beneficiary on your account. If you have any questions or need further clarification, please reach out to the credit union. 

Required Beneficiary Information:

• Person's full legal name/ Trust documents/ Organization’s name
• Date of birth
• Address
• Phone number
• SSN or TIN

Can the beneficiary access the accounts?

Beneficiaries don't have signing authority. This means they are not given account access and cannot make changes to accounts while the account holder is still alive. Only after the account holder’s passing will the funds be payable to the named beneficiary.

What is right of survivorship on joint accounts?

A joint account owner has the right of survivorship, so upon the death of either of the owners, all the funds pass directly to the surviving owner. For example, if one spouse were to die, the other spouse would still be able to access all money in their shared joint account. If there is no joint ownership, then funds are given to the recorded beneficiary on that account. You should consider adding a beneficiary if you don’t have join ownership on your account.

What happens if there is no beneficiary listed on the account?

Suppose your account does not have a named beneficiary or a joint account owner. In that case, it will be handled by the court-appointed executor of the estate. Executors are required to file an application or petition with the probate court in the county where you lived at the time of your death. If your estate is worth $75,000 or less, your heirs may be able to collect the property without going to court by using an Affidavit for Collection of Personal Property. Please reach out for guidance from a financial professional or attorney to ensure your plans will be correctly carried out.

When will the beneficiary receive funds?

The credit union must receive notice of the account owner’s death and be given a copy of the account owner’s Death Certificate. In order to receive funds, the beneficiaries must provide a valid form of government issued identification. 

When can beneficiaries be updated?

Changes to beneficiaries can be made at any time. Life events or change of circumstances like a divorce, death of a current beneficiary, or birth of a child may require a beneficiary on your account be added or updated. If you fail to keep your beneficiaries up to date or make a mistake in documenting them, someone other than who you intended may receive your assets. 

Beneficiaries can be added or removed by submitting an account change form signed by all account owners and providing any additional information needed to complete the modifications or addition to the account’s beneficiaries. Contact us by calling 507-455-5430 or email fedecu@fedins.com to request your current beneficiary information.

Can children or grandchildren be beneficiaries?

Children under the age of 18 can be named as beneficiaries. If they are still minors when the account owner dies, the funds will be sent in the child’s name to the minor's legal guardian. Talk with an attorney for help setting up the best option for your situation.

What happens if the account is in a Trust, or the beneficiary is a Trust?

A trust can be the owner of the account or named as the beneficiary. This allows the funds in the account to pass directly to the trust upon the owner's death and avoids the probate process. Once the funds are transferred to the trust, the Trustee will manage and distribute them according to the instructions outlined in the trust document.  

How can I create an estate plan?

The Federated Employees Credit Union has partnered with Love My Credit Union Rewards to offer access to Trust & Will estate planning services and an exclusive credit union membership discount. Trust & Will is an easy-to-use online estate planning platform providing legally binding , state-specific documents customized to fit your needs. Making an estate plan now the best way to prevent your family from going through the long and expensive probate court process when you’re gone. Learn more today!

Note: This article is intended to highlight common questions and issues and provide general information only.  It should not be considered legal or tax advice regarding your specific facts or circumstances.  Consult a qualified professional with questions regarding the topics herein. 

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