Special Accounts

When should you use the Close Membership eJob Aid?

When closing a membership

When do successor trustees take over the management of a trust and do all of them need to be present when doing this?

In the event the trustees are deceased, certificate of death, trust docs

When does an agent for a Springing Power of Attorney have rights to act in behalf of the principal?

Becomes effective in the future if a specific event occurs. Often that event is the illness or disability of the Principal. It will frequently provide that the Principal's physician will determine where the Principal is competent to handle his or her financial affairs.

How do you title an UTMA account?

"[name of custodian] as custodian for [name of minor], NMUTMA

What is a power of attorney?

A POA is a legal instrument that is used to delegate legal authority to another. The person who signs (executes) a Power of Attorney is called the Principal. The power of Attorney gives legal authority to another person (called an Agent or Attorney-in-Fact) to act for the Principal in property, financial and other legal matters · A Principal can give an Agent broad legal authority, or very limited authority. The Power of Attorney is frequently used to help in the event of a Principal's illness or disability or in legal transactions where the Principal cannot be present to sign necessary legal documents. A power of attorney does not take away the decisional rights of the Principal. Our member is still allowed to transact on his/her membership.

How should signature cards for minor accounts be signed?

Either minor sign if able to (15 older) or parent sign name as parent of minor's name

Can deposits/gifts made to an UTMA account be taken back?

Gifts deposited are irrevocable

When a member passes away, how are the funds distributed between joint owners?

If account is being closed funds are distributed equally. If spouse, can maintain account

What documentation is required for opening conservatorship accounts?**

Letter of conservatorship 1. Must be filed with the District Court and the raised seal or original sticker seal must be present. ii. Variations that are also acceptable: 1. Letters of Temporary Conservatorship(must not be more than 60 days old) iii. Letters of Limited Conservatorship - a court order must also be obtained to verify the individual can take over

What documentation is required to be collected from the personal representative when we are notified of the member's death?

Letters of testamentary or letters of administration Along with certificate of death.

Should we give tax advice to members?

NO

What are the different parties within a POA and what do they do?

Nondurable", "Durable", and "Springing" Power of Attorneys. · Durable Power of Attorney: o A "Durable" Power of Attorney enables the Agent to act for the Principal even after the Principal is not medically or physically able to make decisions. The "Durable" Power of Attorney is effective until it is revoked by the Principal, or until the Principal's death. · Nondurable Power of Attorney: o A "Nondurable" Power of Attorney is terminated if the Principal becomes medically or physically unable to manage his affairs. A Nondurable Power of Attorney must state that it is "terminated by the incapacity of the Principal." · Springing Power of Attorney: o A "Springing" Power of Attorney becomes effective in the future if a specific event occurs. Often that event is the illness or disability of the Principal. It will frequently provide that the Principal's physician will determine where the Principal is competent to handle his or her financial affairs

Debit cards are allowed/not allowed on which special accounts?

Not allowed on conservator accounts, rep payee accounts, estate accounts, or UTMA accounts. Are allowed on Trust

Can more than one agent be appointed as a Power of Attorney?

Yes

Do Roth IRAs have a income limit for contributions?

Yes, Maximum combined contribution limit for Traditional and Roth IRAs is $6,000.00 (or 100% of compensation if less). Members 50 years and older can complete an additional $1000.00 contribution.

What restrictions are on Estate accounts?

· Only checks made payable to the Estate are to be negotiated in membership. · Only the named Personal Representative(s) can be the signer(s) on the account · The personal representative may not assign a POD to the account. Estate accounts are opened to finalize the business of the deceased and distribute to the beneficiaries. · The personal representative may not have an ATM or Visa Check Card, they may however, receive checks. · A power of attorney cannot be accepted to act on behalf of the personal representative.

What documentation is required to open an Estate account?

· Tax Identification Number for the Estate- IRA letter · Letters of Testamentary or Letters of Administration · Death Certificate