Rep Payee
What kind of nickname would you give this type of checking or savings account?
Rep Payee Savings / Rep Payee Checking
What is an irrevocable trust?
A trust that cannot be modified after it is created.
Another name for a revocable trust
A living trust. These terms are used to describe the same thing: a trust in which the terms can be changed at any time.
The name of the person in charge of an estate account
The personal representative!
Can Lake Trust accept wills for a deceased member's account?
No.
What kind of funds are allowed to be deposited into this type of account?
Only social security benefits
Who can close a trust account?
Only a trustee can close an account. If there is more than one trustee, both need to be present.
What is needed to add a trust as a beneficiary on an account? What happens once the member passes?
In order to add a trust as beneficiary, we only need a signed Membership Application or a signed Beneficiary Designation Form. We do not need any trust documents at that time. Once all owners on the account have passed, the account goes to the Trust and at this point we would request an updated Certificate of Trust
Who can transact on estate accounts?
Only the personal representative!
Can you complete a death claim checklist without seeing the death certificate?
Yes! Process the death claim as normal even if we don't have a copy yet. If we receive a death certificate afterwards, we can always upload that alone. Always check identifi to see what paperwork we do/don't have on file for the member!
Is an appointment letter from the Social Security Administration required to open this type of account?
No - While preferred, it is not required.
Do you need an EIN for an irrevocable trust?
Yes. While proof is preferred prior, it is not necessary and you can move forward with opening up an this type of account without it.
What does a revocable trust turn into after the trustee has passed?
An irrevocable trust.
What is an estate/estate account?
An estate consists of all the property that a person leaves behind when they pass away. Estate accounts are used to gather all of the assets for an estate and to pay bills to settle an estate.
What are the names of some of the types of paperwork an individual may present when coming in to inform us a member has passed?
Letters of Authority. Petition and Order of Assignment. Affidavit of Decedent's Successor.
What is the fiduciary's responsibility in relation to the account?
Only responsible for managing the funds. They do not have any rights to the funds, however.
Is an irrevocable trust and an estate account the same thing?
No, they are two separate legal entities requiring separate EINS. In most instances, the member will not require both types of accounts.
Does Lake Trust act as a Trustee for our member's trusts?
No. While some financial institutions may offer this service, Lake Trust does not.
How long can an Estate account be left opened?
Generally, they stay open until the decedent's affairs have been settled. While some estates can be settled quickly, the average is 2 years. This can sometimes be even longer depending on each individual estate/situation.
If during the process of completing a death claim we see that the member had an IRA, what should we do?
Give the IRA specialists a call! They have a lot of information they need to process on their end prior to contacting the beneficiaries of the IRA plan.
Can the ward do a withdrawal from the account?
No. Only the fiduciary can access the funds.
Can a successor-trustee start using the accounts/writing checks as soon as the trustee passes away?
No - not on the existing accounts. We need a copy of the original death certificate and an updated certificate of trust to confirm who the current acting trustee is.
Can you add the trust on to an existing account?
Yes - however you need to determine whether or not there are joint owners on the account. If the joint owners are not acting trustees, they will need to remove themselves before we can add the trust.
What required documents or information is needed for opening an estate account?
On top of the required Lake Trust documents, we need the following: Letters of Authority for the personal representative, EIN (Proof is preferred, although not required), an original death certificate, and a valid ID for the personal rep.
The name of a form that can sometimes be used to close the account(s) when a member has passed. (Hint: This document refers to the deceased's entire estate, not just their Lake Trust)
Affidavit of Decedent's Successor