Account Ownership

Deposit accounts

When you open a deposit account, such as share or checking, you can choose who will have access to the funds, and be accountable for taxes and other ownership responsibilities. Types of ownership:

• An Individual Account is in the name of one individual member of the Credit Union.
• A Joint Account is owned by two or more LGFCU members with the right of survivorship.
• A Payable on Death account will release funds only to designated beneficiaries.

UTMA Account

The Uniform Transfer to Minors Act (UTMA) allows for an irrevocable gift to a person under 21 years of age. While the funds deposited into a UTMA account are owned by the minor, the adult custodian acts on behalf of the minor and any withdrawals from the account must be used for the benefit of the minor.

• Either the minor or the custodian must be a member of LGFCU.
• Only one custodian and one minor per account.
• Dividends are taxable income to the minor child, not the custodian.
• When the minor reaches age 21, the custodian must transfer all of the remaining funds to the minor.

Personal agency account

A personal agency account allows the account owner(s) to name someone else to carry out account transactions on their behalf if they are unable to do so.

• The member has the right to appoint another person to act as agent in depositing and withdrawing funds from the account.
• The personal agent does not have any claim to the funds in the account.
• The personal agent's authority ends upon the death of the account owner. 

Trust deposit accounts

Trusts give legal instructions regarding how property and assets will be managed and then passed to beneficiaries. LGFCU offers both Irrevocable Trust and Revocable Living Trust deposit accounts. 

• The trustee has control of the assets/funds.
• Assets are not subject to probate.
• At the time the account is opened, the trustee must present evidence showing the ability to manage the account, and of his or her authority to open an account on behalf of the trust.

Estate Deposit Account

An Estate Deposit Account is established to provide the executor of an estate with an easy way to manage and distribute the estate’s property.

• The account can only be opened by a representative of the estate.
• Online access provides a quick, convenient way to obtain copies of checks for estate settlement.
• Court documents showing the representative’s appointment and a death certificate must be provided at account opening.