Handling Finances of a Deceased Person

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We at NY TEAM would like to express our deepest sympathies to you and your family during this difficult time of loss. We understand how overwhelming this can be, and our goal is to support and guide you through the account settlement process.

Important Documents

We will need the following during the account settlement process:

  • Death Certificate

  • Letters of Administration, if applicable

  • Letters of Testamentary, if applicable

  • Affidavit, if applicable

 

 

Please refer to the following frequently asked questions to help you understand the process of managing the deceased accounts with NY TEAM FCU.

What do I need to provide to NY TEAM FCU when reporting a death?

The original death certificate will be asked to be provided. We do not accept wills or provide legal advice. To start the process of managing the deceased’s accounts, we will need to see the original the death certificate. Additionally, if you are appointed Administrator/Executor/Executrix, you should provide us with certified copy of the Letters of Administration or Letters of Probate.

How long will the deceased’s account(s) remain open?
We cannot provide an exact date as to when the accounts must be closed, but we encourage you to close the account as soon as possible.

The deceased has Direct Deposit with NY TEAM FCU. What will happen to the funds?

It depends on the situation, the date of death and type & date of payment. Normally, funds deposited after the date of death from Social Security, Rail Road Retirement & Pensions are required to be returned. You should contact the applicable agencies or companies making the payments and determine what is required and if, when and how the funds need to be returned to the paying party.

If the primary and the joint both have passed, how do I close out the account?

You will need the original death certificates of both the primary and joint to close out the account. In the instance if the beneficiary has also passed, we would need the original death certificates as well.

I am a joint owner with right to survivorship on the account; can I still use the account?

Yes, as joint account holder, you will retain access to such funds. However, if the account was held under the deceased social security number, the joint account should be closed as soon as possible. Once the joint account is closed and your new individual accounts established, we issue you a new debit card.

I am the primary owner on account and the joint has passed away, what should I do?

Provide the Credit Union with the original Death Certificate, then the Joint Owner will be removed off the account and your debit card will remain active. At this time, you may want to update your beneficiaries on the account.

During processing the deceased’s NY TEAM FCU consumer loan(s) or credit card: balances in the deceased’s deposit accounts may be applied to the outstanding loan balance. Any loan balances outstanding become the responsibility of the surviving borrower(s) or the member’s estate to repay.

Membership at NY TEAM FCU:
All family members of our members’ are eligible for Membership with NY TEAM FCU. Whether you are looking for checking or savings account, auto or personal financing, we offer a range of accounts with greater rates and fewer fees.
We can assist you with opening your own account with NY TEAM FCU.

 Important Phone Numbers

  • NY TEAM FCU (516) 822-1070
  • CUNA (Credit Life & Disability Insurance): 800-621-6323
  • CUNA TruStage (Auto & Home Insurance): 800-831-0405
  • Efunds: 800-328-5120
  • US Bonds: 800-553-2663
  • Department of Veterans Affairs- Benefits: 8000-827-1000 Life Insurance: 800-669-8477
  • Rail Road Retirement: 877-772-5772
  • Pension: 646-376-0241
  • New York State Letters of Administration information
  • Internal Revenue Service (IRS)
    • 800.829.1040
    • Be prepared to fax the deceased taxpayer’s death certificate, and either copies of Letters Testamentary approved by the court, or IRS Form 56, Notice Concerning Fiduciary Relationship (for estate executors)
    • IRS.gov
  • SSA (Social Security Administration):
  • US Treasury


Disclaimer: The information is for general purposes only. It is not intended to be legal advice or other advice. The material is provided solely on the basis that the user will take full responsibility for verifying the accuracy, current regulations, and requirements. No user should act on the basis of any matter without due consideration, and if necessary seeking appropriate advice based upon his or her own circumstances.

 

The information provided below is for informational purposes only and is not intended to offer legal, financial planning, tax, or investment advice. We recommend seeking guidance from legal, financial, and tax professionals to address any issues or problems you may encounter during the settlement process.

To avoid complications from continued IRS reporting under the deceased’s Social Security Number (SSN), we suggest settling your loved one’s account(s) as soon as possible. We request that you close the decedent’s primary accounts with us no later than six months following the notification of death. The duration of the settlement process varies depending on individual circumstances, and we are still determining how long it will take.

Please note that Power of Attorney becomes void upon an individual’s death.

Keeping your beneficiary information up to date is essential as designating a beneficiary holds more importance than a Will. At NY TEAM FCU, we strongly advise our Members to make use of CUNA’s life and disability insurance when borrowing. Also, keep in mind that a Power of Attorney becomes invalid upon the individual’s demise.

  • What is Probate?

    Probate is a legal process that verifies the authenticity and validity of a Will. This process is in place to ensure that the rightful heirs receive their inheritance and that all debts and taxes are paid. The court uses the Will to determine who will be appointed estate executor. If there is no Will, the court will appoint an administrator, typically a spouse or relative. An attorney or a financial institution may also appoint executors. It is best to initiate the probate process as soon as possible and consult your local court for specific requirements in your area. Although this may be a challenging period, resolving these matters quickly and accurately is essential. The time required to complete the probate process depends on the size and complexity of the estate and state probate laws. The probate process may take months or even years if the estate is large or complicated. However, the probate process may not be necessary if the deceased’s accounts were classified as “Joint Account-With Survivorship.” It is recommended to consult with an attorney to determine which properties are subject to probate.

    Local laws determine the duration of probate.

    • The documents required for probate and their contents may vary depending on the probate court. Most probate courts require the following documents at a minimum, in addition to the deceased’s full name and date of birth: a certified copy of the death certificate (which can be filed later), a Will (if one exists), a copy of the marriage certificate (or the date and location of the marriage) if the deceased was your spouse. If the deceased was previously married, this information must be provided to the court. Names and addresses of all heirs, next of kin, and beneficiaries, and a summary of the deceased’s assets must also be provided.

  • What are the duties of an Executor/Administrator?

    As an executor, also known as a personal representative or administrator, your primary role is carrying out the instructions in the Will. If the estate is simple, you can handle it on your own. However, you may need legal advice if it’s large or complicated. The probate court usually requires you to be bonded to protect everyone involved from fraud, embezzlement, or negligence. If you’re named executor/administrator, it’s up to you to ensure that all debts and obligations are paid, and that the remaining assets are distributed to the heirs.

    The following is a checklist of the typical duties of an executor when settling an estate:

    1. Consult an attorney and a certified public accountant (CPA) about your duties as executor.
      • While optional, checking with these professionals is helpful because they know local probate procedures and the steps required to settle an estate.
    1. File the Will and initiate probate.
      • As executor/administrator, you are responsible for filing a Will with the appropriate state probate court and petitioning the court for “letters testamentary.” These court documents may also be called “letters of administration” or by another name. These documents provide legal proof that you are the executor of the estate. You should get several certified copies of these court documents, as they may be requested when handling certain financial transactions for the estate.
    1. Request several copies of the death certificate.
      • You will need certified copies of the death certificate to conduct estate business. Depending on the jurisdiction, these certified copies usually cost between $5 and $25 each. They can be obtained from the County Clerk’s Office in the county of the deceased’s death, or the funeral director may order them for you.
    1. Retitle property if necessary.
      • If the estate includes property, such as unencumbered automobiles, boats, other vehicles, or real estate, you can transfer titles to the named beneficiary or yourself as executor. If no beneficiary is designated, you may, as executor, decide to sell the property and add the proceeds to the estate. HVCU will require a certified copy of the death certificate and letters of administration for any real estate actions. You should seek the advice of an attorney before you decide to sell or retitle the property.
    1. List any indebtedness.
    • As executor, you are responsible for paying off any debts at the time of the deceased’s death. You must notify all creditors of the death so they can stop any deductions and invite them to submit claims to the estate. Usually, each state sets a time limit for creditors to submit claims. Some things to look for are:
        • utility payments or bills
        • hospital, doctor or other medical expenses
        • loan payments or bills
        • credit card payments or bills
        • cell phone/internet service provider.
    1. Notify Depositors.
    • Notify any companies that electronically deposit funds to the decedent’s account. Inform them of the account holder’s death so they can stop the deposits. Here are some you may need to notify:
        • Social Security or other Federal recurring deposit
        • Pension/401k
        • Payroll
        • Insurance Companies (i.e. Annuity Payments)
      • Note: Electronically deposited funds solely in the decedent’s name presented after the date of death may be returned to the originator. 
    1. Close credit union, bank and investment accounts, and open an Estate Account.
      • You should close any account owned solely by the deceased and transfer those assets to an account allowing you to settle the deceased’s bills and other obligations. You should seek the advice of an attorney before you open an Estate Account.
    1. Locate insurance policies and file claims.
      • Life insurance benefits are usually payable to designated beneficiaries and are not part of the estate. To file claims, you need the policy numbers, the deceased’s full name, and certified copies of the death certificate.
    1. File taxes.
      • Federal and state taxes for the deceased will need to be filed for the year in which they passed away and for the year the Estate Account is closed. Consult the IRS or a CPA for assistance. You should also seek the advice of an attorney.
    1. Close the Estate Account and distribute the remaining assets to beneficiaries.
      • After ensuring all estate debts have been paid, you can distribute any remaining assets to the beneficiaries and close the Estate Account. You should seek the advice of an attorney before you close an Estate Account.

  • What happens if there is a outstanding loan balance?

    If a member passes away while having an outstanding loan balance, any applicable Credit Life Insurance coverage will be applied to the balance as of the date of death. The estate’s representative will be notified of any remaining balance. If there are any outstanding balances, they become the responsibility of the co-signer, co-borrower, or the member’s estate. The executor or administrator of the estate must either pay off all the existing loan balances or provide the necessary documentation for us to file a claim against the member’s estate. If there is no co-signer or co-borrower, or if the estate is insolvent, the loan will be referred to the Decedent Accounts for further action.