45 THE NAFCU JOURNAL January–February 2023 FCUs that are state-chartered should look to their applicable state law to see the requirements to open estate accounts. Share Insurance A question that often comes up when a member dies is, are the accounts insured? NCUA’s Share Insurance regulation, section 745.5, discusses share insurance for “accounts held by executors or administrators.” Under section 745.5, accounts held in the name of a decedent or in the name of an administrator/executor of an estate are insured, in the aggregate, up to the maximum amount. These accounts are insured separately from other accounts of the beneficiaries or the administrator/executor. Federal Benefits Many deceased members receive regular federal benefits payments, such as from social security, prior to their passing. Often, credit unions will receive further federal benefits payments even after the member dies. With some exceptions, credit unions are generally required to return these benefits to the government. Chapter 5 of the Treasury’s Green Book states: “A Receiving Depository Financial Institution (RDFI) must immediately return any post-death benefit payments received after the RDFI becomes aware of the death or legal incapacity of a recipient (but not post-death benefit payments that the RDFI received before becoming aware of the recipient’s death).” The Green Book goes into much greater detail into an RDFI’s responsibilities and credit unions may want to further review the Green Book if they are worried about federal benefits payments. There are many other financial considerations for the deceased, including credit card debt, loans secured by real property and more. NAFCU’s Compliance Team can help point credit unions to NCUA and other federal resources to help you navigate these scenarios. Amazon Web Services Website: aws.amazon.com................................ C4 Daon Website: daon.com................................................. 7 Gallagher Website: nafcu.org/gallagher............................. 4 Index to Advertisers MasterCard Website: mastercard.us......................................33 Money Concepts Website: moneyconcepts.com..........................41 Personetics Website: personetics.com................................... 15 Q2 Website: q2.com................................................... C2 Upstart Website: upstart.com/credit-unions.............. C3
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