Account Settlement: After the Loss of a Loved One
Visions Federal Credit Union extends our condolences to your family.
We understand this can be a difficult and overwhelming time, but remember you’re not alone. You can lean on us for guidance as you navigate the account settlement process.
The information below is for informational purposes only and not intended to provide legal, tax, financial planning, or investment advice. Please seek the advice from legal, financial, and tax professional’s advisors with the respect to any issue or problem you may encounter during the settlement process.
We recommend that you settle your loved one’s account(s) as soon as possible and request that you close the decedent’s primary accounts with us no later than six months following the notification of death. We are required to continue to report to the Internal Revenue Service (IRS) under the decedent’s Social Security Number (SSN) until the account is closed. By taking prompt action, you can avoid complications resulting from continuous IRS reporting under the deceased’s SSN. We cannot predict how long it will take for an account to settle without understanding the scope of an individual’s circumstances.
If you’re looking into this guide proactively, then you may want to consider contacting our Trust department or Visions Investment Services to explore additional options for managing or protecting your loved one’s assets. Additional information also available through our Contact Center by calling 800.242.2120.
*Please keep in mind that Power of Attorney is voided upon death of the individual*
Getting Started: What You Need to Know
What is the first step?
Inform us of the member’s passing and we’ll initiate the account settlement process. You can either call us at 800.242.2120 or stop into a local branch.
We recommend that you notify Visions, as well as any other financial institutions with which the decedent had a relationship, of the account holder’s passing as soon as possible, then complete the settlement process within six months. This helps to protect the decedent's accounts from potential fraud and tax complications. Visions is required to continue to report to the Internal Revenue Service (IRS) under the decedent’s Social Security number (SSN) until the account is closed. By taking prompt action, you may avoid tax reporting complications with the IRS.
What kinds of documentation will I need?
We’ll ask you to provide the following, if applicable.
Important documents:
- Death Certificate – Must be an original certified copy, not a photocopy
- Letters of Administration (if applicable) – If no Will exists, or if there is no living executor, the probate court will issue this documentation granting executor authority
- Letters of Testamentary (if applicable) – This is a document from the probate court giving authority to the executor of the estate
- Small Estate Affidavit (if applicable) – This document is used to request payment from a decedent’s individual account.
- New Jersey state tax document (if applicable)
- Copy of the paid Pennsylvania funeral bill (if applicable)
*An affidavit is a notarized, sworn, and written declaration made before an official authority, such as a judge of the court or notary public. The affidavit states that there was no estate established, according to the bylaws of the state in which the deceased member resided. It also states who is entitled to the funds such as a surviving spouse or child.
Important Changes
The process may vary, but many precautions are taken to protect the decedent’s assets and ensure that only authorized individuals are performing transactions.
Here's what changes:
- Access to decedent's accounts is limited
- ATM is unavailable
- Express Deposit is unavailable
- Shared Branching is unavailable
- Safe deposit box is sealed and access is restricted
- Digital banking is restricted to inquiries only
- Automatic payments stop processing to Visions loans
- Certificate dividends remain in the share certificate and will not automatically transfer to another account
It’s important to note, Power of Attorney is only valid until a person has passed away. Therefore, all Powers of Attorney are voided at the start of the account settlement process.
How long does account settlement take?
Without understanding the scope of an individual’s circumstances, we can’t predict how long it will take for an account to settle. However, we recommend that you settle your loved one’s assets as soon as possible and request that you please close their associated accounts with us no later than six months following the news of their passing.
Settling Different Account Types
- Personal Accounts
- Individual Retirement Accounts (IRAs)
- Safe Deposit Boxes
- Automated Clearing House (ACH) – Payments, Transfers, and Deposits
- Credit Cards, Loans, and Mortgages
Important Contacts
IRS
• http://www.irs.gov/
• 800-829-1040
Social Security Administration
• https://www.ssa.gov/
• 800-772-1213
US Treasury
• https://home.treasury.gov/
• 202-622-2000
Visions Federal Credit Union
Mailing Address:
24 McKinley Ave
Endicott NY 13760
Contact Center:
Call 800.242.2120
Monday - Friday, 8:30 AM - 6:00 PM
Saturday, 8:30 AM - 2:00 PM