Conservator Accounts
Describe a Conservator Account - what is this account used for?
An account that is managed by a judge-appointed individual to manage financial affairs for another due to physical, mental, or age limitations.
What is a Custodial Account?
account that can be opened for the benefit of a minor, without the minor having access to it until they are a legal adult themselves. Typically age 18, but as old as 21 in certain circumstances.
What is an Estate Account?
Account that holds the finances of someone who has passed away and is managed by an appointed personal representative.
Account opened for the sole purpose of receiving Social Security, VA or other Government agency funds
What is a trust account?
A trust is traditionally used as part of an estate plan. it is a fiduciary arrangement that allows a third party, or trustee, to hold assets on behalf of a beneficiary or beneficiaries.
This is the ONLY person allowed to act on a conservator account, A person who is appointed to manage the conservatee's (protected person's) finances.
The Conservator
TRUE/FALSE
Legal documentation is required to open a custodial account.
FALSE
True/False
An estate account can only be opened if the deceased person was already a member with the CU.
FALSE
Deposit ops can approve special circumstances to open an estate account if all beneficiaries of the estate are existing members.
True/False
The beneficiary of a rep payee account must qualify for membership.
TRUE
The beneficiary in the case a rep payee account is who the funds in the account are for, so yes they must qualify to be a member.
TRUE/FALSE
All grantor/settlor(s) of the trust must maintain a primary membership with the CU
TRUE
How many name records will be on a conservator account front screen?
ONE
written as
[Name] Conservator for [Name] Conservatee
What is one thing that is required on a custodial account that is recommended but not required on most other accounts?
Beneficiary
Who's Tax ID does the estate account report to?
The estate must obtain its own EIN,
this can be done online for free.
What is the title of the individual or entity who has been appointed by Veterans Administration to receive benefits on behalf of a beneficiary for the benefit of the beneficiary?
*BONUS 100* What is the title of the person or entity appointed to receive SSA or SSI benefits?
Fiduciary (VA Benefits)
*BONUS* Representative Payee (SSA/SSI)
This type of trust can be amended by the grantor as circumstances change.
Revocable Trust
What is the proper way for the Conservator to sign documentation?
*Bonus 100pts* What is this type of signature called?
[First Name] [Last Name], conservator
*Bonus* Signing in a "Fiduciary Capacity"
What is the minor required to have before anyone can open a custodial account for them?
Primary membership with a legal guardian as joint
This legal item names the personal representative. It MUST be filed with the probate court and must have a file number and be signed by the Probate court judge or court deputy/clerk. This item is required to open an estate account.
Letter of Authority
This is a less common type of Representative Payee Account.
It is account separate from all others that the representative payee of a disabled child under age 18 is required to open, when the child is eligible for large past-due payments.
Dedicated Account
This trust is defined as a trust that is not able to be amended or changed
*BONUS 100* What is the most common way a trust gets converted to this type of trust?
Irrevocable Trust
*BONUS* If the original trustees all have passed away
Name at least 2 things required to open a Conservator account with the credit union.
- Letter of conservatorship (signed by a judge)
- Credit Union Conservator Account Application
- Protected individual must qualify for membership
Who can open a custodial account?
*Bonus 100* What do they have to prove?
Any adult that fills out an application and qualifies for membership.
They do have to be able to prove to the state (not the CU) that the funds are for the benefit of the minor
An estate account is not required if we get this form that gives the Credit Union instructions on how funds held in any financial account should be disbursed.
Petition and Order for Assignment
TRUE/FALSE
We are required to pull chex/credit on the beneficiaries of Rep Payee accounts
FALSE
TRUE/FALSE
ALL Grantors/Settlors and Beneficiaries of a trust must qualify for membership.
TRUE
Grantors/Settlors must open a primary membership with us. Beneficiaries have to qualify but are not required to open membership with the CU.