Account Ownership

An individual account is an account owned by one (1) member eligible for Credit Union membership. If the account owner dies, the ownership of the funds passes, subject to applicable law, to the account owner’s estate (unless there is a Payable on Death (POD) payee named on the Membership Application or the Payable on Death designation form).

A joint account is an account owned by one (1) member and an additional individual(s) who has/have a full ownership interest but do not have membership rights in the Credit Union. The following applies to joint accounts:

• Rights of survivorship: A joint account includes rights of survivorship. This means that when one (1) party dies, all sums in the account will pass to the surviving party(ies). If all of the parties are deceased, the last deceased party’s interest passes to his or her estate (unless there is a Payable on Death (POD) payee named on the Membership Application).
• Control of accounts: Any party may transact business on the account without restriction as a full owner of the funds. For example, they may withdraw or transfer funds, close the account, order additional debit cards, reset passwords, pledge to us all or any part of the shares, or stop payment on items without the consent of the other party(ies). We are not required to separately notify the other party on the account about any transaction effected by the other party on the account.
• Liability of parties on an account: If any item deposited is returned for insufficient funds, the account is overdrawn, or if we do not receive final payment on a transaction, the parties, jointly and severally, are liable to us for the amount of the returned item, overdraft, or unpaid amount and any fees, regardless of who initiated or benefited from the transaction. If any item deposited is returned for insufficient funds, the account is overdrawn, or if we do not receive final payment on a transaction on any account owned by any of the joint owners, funds in a joint account may be collected for the amount of the returned item, overdraft, or unpaid amount and any fees, regardless of who initiated or benefited from the transaction.

• Payable on Death (POD): An individual or joint account can have a payable on death designation. Upon the death of the account owner(s), the funds in the account are then disbursed to the then-living Payable on Death payee(s) designated on the account. The funds in the account are generally not part of account owner(s) estate.
• Convenience Person: Although the State of Maryland allows individuals to authorize convenience person(s) to transact business on an account without an ownership interest, the Credit Union does not offer this account structure outside of establishing a Power of Attorney authorization.
• Power of Attorney: Account owners may vest an individual(s) with a Power of Attorney (POA). Any person named as an agent under a power of attorney will have access to the account, but only to act on the account owner’s behalf and in their best interest and to the extent authorized in the POA. There is no ownership interest in the account(s) granted through a POA. The Credit Union can provide a standard POA form for your convenience, or you may have your own attorney draft one. If you provide your own POA, there may be a fee for our legal review of this document prior to it going into effect.

The Credit Union offers trust accounts for members. A trust account is an estate-planning tool used to avoid probate and can help ensure your assets are distributed the way you intended after your death. Members should seek the advice of an attorney regarding the establishment of a trust, the Credit Union does not provide legal, tax or accounting services or advice to members.

Once a membership account is set up as a trust account, all deposit accounts under this membership are held in the trust except for Individual Retirement Accounts (IRAs) which require a beneficiary to be specified. Your attorney should prepare the necessary documentation to establish a trust. You may establish a revocable living trust where you may change or revoke the trust at any time, or an irrevocable trust where you permanently relinquish ownership to the trust. The Credit Union requires you to provide the following when establishing a trust account:

• Full copy of the trust or a trust abstract or trust synopsis
• General Trust Agreement
• Trust Account Membership Application
• Supplemental Application/Information Sheet and Certificate for a Trust Account
• Trust tax identification number

Accounts for minors can be opened as an individual, joint or custodial/Uniform Transfers to Minors Act (UTMA) account depending on the minor’s age.

• Individual: A minor eligible for membership may open their own savings and checking account with a debit card at the age of 16. A photo identification is required such as a valid driver’s license or school ID as well as proof of address (a report card or a statement from another financial institution is acceptable). If a checking account is opened, a credit report is obtained on the minor. A parent or legal guardian can only be added as a joint owner with the written authorization of the minor by completing a new Membership Application with the joint owner.
• Joint: The Credit Union will allow a minor to open a joint account with a parent or legal guardian. To open a joint account, the minor has to be able to sign his/her name on the signature card. Otherwise, a custodial/UTMA account can be opened. If the last names of the minor and the joint do not match, we require a birth certificate or legal guardianship documentation to verify the relationship. A photo identification is required for the joint owner such as a driver’s license, passport, military ID or other government issued ID. If the minor is age 16 or 17, a checking account may be opened and a credit report will be obtained on the minor and joint owner. Check endorsements are limited to the minor or the parent/guardian who must include the following verbiage:

Signature of parent/guardian

Parent/guardian of [child’s name]

• Custodial/UTMA: The Credit Union offers Custodial/Uniform Transfers to Minors Act (UTMA) accounts which can be opened by a custodian who is a parent or legal guardian. Deposits to a custodial account are an irrevocable gift to a minor. Checking accounts and debit cards are not permitted under the custodial account ownership type. An ATM card can be issued to the custodian of the account. If the last names of the minor and the custodian do not match, we require a birth certificate or legal guardianship documentation to verify the relationship. At the age of majority (21 in Maryland) the account is to be closed and the funds turned over to the beneficiary (minor/owner). The designated custodian does not own the deposits in the account, the minor is ultimately the owner of the funds in the account.

Associations may open accounts with the Credit Union, if the individual opening the Association Account is a member in good standing. To open an association account, the following documents/information must be provided:

• Association Account Application
• Corporation, and/or Association/Organization Authorization, Resolution, Certification and Release of Liability Form
• Banking Resolution
• Certificate of Incorporation
• Bylaws/Operating Agreement
• Valid Driver’s License (or other government issued identification) of all signers

Please note that signatures are required on the first two bulleted items for all officials with authorization to access the account, and these forms will supersede all previous forms.

Businesses may open accounts with the Credit Union, if the individual opening the Business Account is a member in good standing. To open a business account, the following documents/information must be provided:*

The Credit Union does not provide the following types of accounts:

• Custodial Accounts for Adults
• Estate Accounts
• Representative Payee Accounts