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| Credit Life Insurance | Credit Life Insurance is offered to members to pay off their loan up to policy maximums should they pass away before the loan is paid off. Please refer to the loan documents to see if this coverage was purchased. Top of page |
| Power of Attorney Agreements | All Power of Attorney (POA) agreements cease at the time of death. As a result, transactions based on a person claiming to have rights under any POA can not be processed. Top of page |
| What is Proof of Death? | Proof of Death is a certified copy of the death certificate. This certificate is identified by a raised seal. Top of page |
| What happens with Marital Accounts in WI? | This type of account is owned by the parties named within it. Upon the death of either, the survivor owns 50% of the sums on deposit. This means that half of the funds are released under the procedures for a joint account. The other half is released as described in the solely-owned accounts unless a POD Marital Account Card is on your file. The account is also subject to the Automatic Revocation rule for divorce and annulments. Top of page |
| What happens with Solely Accounts in WI? | One way to show that you have the right to transact business on behalf of the decreased in Wi is through a Domiciliary Letter, for Formal or Informal Probate. By completing this document a personal representative has the responsibility to collect and distribute assets. They are legally entitled to collect all solely-owned funds. A personal rep generally handles the estate of the deceased and is appointed by the Probate Court or Register in Probate. Alternatives to a Probate Court ordered personal representative are a Summary Settlement, Summary Assignment or Affidavit for Transfer of Property. The Summary Settlement and Summary Assignment are a simplified procedures for probating qualified small estates without the use of a personal rep. To see qualifications for Summary Settlement is Wis.Stats.867.01 and for Summary Assignment see Wis.Stats.867.02. The Affidavit for Transfer of Property is the most commonly used procedure. It may be used by an interested party to claim personal property or to collect money owed to the decedent when the total value of all solely-owned property in the state of WI is $20,000 or less. The affidavit may also be used by a person who was the legally appointed guardian of the decedent just prior to the time of death. |
| Non-Resident Descendents (WI) | When the deceased lives outside of Wisconsin, the entitlement is very much the same as if they lived in state. An Affidavit for Transfer or Property can still be used in those cases that in-state heirs qualified for. However, if a personal rep/executor has been appointed by a court outside of WI but there is no personal rep/executor appointed in-state he/she would have to file with a WI circuit court an original or certified copy of the court documents from the other state. Once filed in WI, the foreign personal rep would have all the powers that a WI personal rep would have. Top of page |
| What is Letter of Office from IL? | Letters of Office are similar to Wisconsin's Domiciliary Letters. With a Letter of Office funds can be distributed to the court appointed representative conditioned that there is no other known written orders such as Pay on Death beneficiary. Top of page |
| What is Small Estate from IL? | A "small estate" is one where the decedent's personal property is valued at less than $50,000. An affidavit is used to access individually owned account funds. The affidavit must substantially conform to the small estate provisions of the Illinois Probate Act. It is not necessary that the affidavit be prepared by an attorney. Top of page |
| What happens with Checking Accounts and checks payable to the decedent? | Checks written by the deceased may be accepted up to 10 days after the date of death, unless ordered to stop by a person claiming an interest in the account. If the Credit Union is informed of the death after 10 days, they may stop payment of checks immediately. There is never authorization for others to write checks in the deceased's name. Checks made payable to the deceased may no longer be deposited into their account without endorsement as could have been done prior to death. This is due to the fact that the deceased is technically not a party to the account any longer. Checks made payable to the deceased or another party can still be negotiated to any joint payee. Heirs of the decedent generally lack the authority to endorse or deposit checks payable to the deceased. This is true even with an Affidavit for Transfer of Property. A personal rep/executor however generally can deposit into the estate account. A personal rep should not be allowed to deposit a check into his/her own account if the check is made payable to the deceased, to the probate estate, or to the account holder "as personal rep" for the deceased. Top of page |
| What happens to government checks payable to the deceased? | Most government checks should not be accepted when made payable to the deceased even when presented by the personal rep. The personal rep should contact the issuing government agency for assistance. A few types of federal checks that can be negotiated by the personal rep are tax refunds, payments for goods or services, and payments for redemption of currencies, principal or interest on U.S. securities. The personal rep should endorse these similar to "John Doe by Mary Doe, personal representative of the estate of John Doe". If funds from the government are directly deposited, it must be determined if the funds will need to be refunded to the government. Any government benefit payments paid after the date of death will need to be reimbursed back to the government. Top of page |
| What happens with Joint Deposit Accounts? | Joint accounts typically fall under the feature of automatic survivorship. This means that any remaining joint owner(s) have full and complete control over the funds on deposit. This is true until the deceased is the last owner of record. In Wisconsin, unless there is written orders to the contrary above, the surviving joint owner of an account must out live the deceased by at least 120 hours (5 days). If not, it is considered simultaneous deaths. Also, as of January 1, 2000, Divorce or annulment automatically revokes the survivorship rights of the now former spouse, or any relative of the former spouse. Top of page |
| What happens with Payable on Death (POD) Accounts? | On Payable on Death (POD) Accounts the funds are to be paid out directly to the stated beneficiary upon the death of the account owner. If there are multiple beneficiaries, the funds are distributed equally unless there are other written instructions. Like a jointly owned account, POD funds can't be claimed by the personal rep of the deceased estate. The POD feature is not activated until all joint owner's die. If the beneficiary dies before the last owner, the funds go to the last owner's estate. However, if the POD beneficiary dies after the last owner, the funds go to the POD's estate. Wisconsin accounts are again subject to the 120 Hour Survivorship Clause as well as the Automatic Revocation Clause for divorces and annulments. |
© 2006 - 2008 First American Credit Union. All Rights Reserved. |
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