Account Settlement

• Accounts without joint accountholders are closed and funds are distributed to designated beneficiaries once any outstanding loans have been satisfied. If there are no designated beneficiaries funds are distributed to the estate once any outstanding loans have been satisfied.
• Accounts with joint accountholders remain open until we receive all proper documentation regarding the member's death. Surviving joint owners can continue to use the account, but it will be closed eventually. The surviving joint owners cannot choose to have the account retitled in their names.
• Funds can be transferred to an HVCU account, or a new HVCU account can be opened if the joint accountholder is not an HVCU member.
• Visa Debit Cards associated with the account are deactivated to prevent unauthorized use.
• Internet Banking, Mobile Banking, and Bill Pay are deactivated to prevent unauthorized use.

Certificate accounts without joint accountholders are closed and funds are distributed to designated beneficiaries once any outstanding loans have been satisfied.  If there are no designated beneficiaries funds are distributed to the estate once any outstanding loans have been satisfied.

Certificate accounts with joint accountholders can be settled as follows:

• Funds can be transferred to a new certificate account that has the same dividend rate and maturity date as the original certificate account. Additional funds may not be added to the new certificate account.
• The certificate account can be closed without penalty. Funds can be transferred to an HVCU account, or a new HVCU account can be opened if the joint accountholder is not an HVCU member.

IRA accounts are closed without a penalty and distributed to the designated beneficiaries. IRA spousal beneficiaries can treat funds as their own. A spousal beneficiary may choose to accept the funds from the IRA account as their own and deposit them directly into an IRA account established in their name. For non-spousal beneficiaries, the funds are placed into an IRA beneficiary account. An HVCU representative provides the beneficiaries with additional information and disbursement options. 

Notify companies and services that electronically deduct funds from the decedent's accounts so that they don't continue to make the deductions. Companies include:

• Utility Companies
• Cell Phone Providers
• Cable/Internet Providers
• Credit Card Companies
• Mortgage Holder
• Insurance Companies
• Loan/Leasing Companies
• Gym Memberships
• TV/Video Streaming Services
• E-ZPass
• Other Subscription Services

Notify any companies that electronically deposit funds to the decedent’s account so that they may stop the deposits. Here are some you may need to notify:

• Social Security or other federal recurring deposit
• Pension/401(k)
• Insurance
• Payroll

Note: Electronically deposited funds solely in the decedent’s name presented after the date of death may be returned to the originator.

Probate is the process by which the court determines the authenticity and validity of a Will. It is designed to protect the family and ensure that the persons who are entitled to receive the assets do receive them. It also provides a process to ensure that all debts and taxes are paid. The court uses the Will to determine who is to be appointed executor of the estate. If there is no Will, the court appoints a personal representative (e.g., “administrator”), usually a spouse or relative. An attorney or a financial institution may also be appointed as executor or administrator. It is best to go to probate court as soon as possible and check with your local court for specific requirements in your location. This may be a trying time for you, but it is best to settle these matters as quickly and accurately as possible. The size and complexity of the deceased’s estate, plus state probate laws, determines how long the process takes. If the estate is large or complex, the probate process can take months or years to complete. On the other hand, the probate process may not be required if the deceased’s accounts were classified as “Joint Account—With Survivorship.” It is best to consult an attorney to determine what property is or is not subject to probate.

Local laws determine how long probate takes.

The documents required for probate and what they must contain can vary from one probate court to another. In addition to the deceased’s full name and date of birth, most probate courts require, at a minimum, the following documents:

• Certified copy of the death certificate (this can often be filed later)
• Will, if there is one
• Copy of the marriage certificate (or the date and place of marriage) if the deceased was your spouse. If the deceased was previously married, you will need to give this information to the court.
• Names and addresses of all heirs, next of kin, and beneficiaries
• Summary of the deceased’s assets

An HVCU Estate Account provides an efficient solution for holding estate assets in interest-earning accounts while keeping them separate from the executor/ administrator’s own personal accounts. Typically, the deceased member’s assets are deposited into savings, then transferred as needed to checking for easy payment of taxes, debts, and other obligations during the estate settlement process. The HVCU Estate Account gives the executor/administrator an accurate picture of the estate’s finances at any given time—a real benefit when completing tax returns and other documentation.

It is important to keep the estate’s finances separate from your own.

To establish an Estate Account, you need to provide:

• Court documents designating an estate executor/administrator.
• An Employer Identification Number (EIN) for the estate. The EIN can be obtained by filing Form SS-4 with the IRS. This form is available at U.S. Post Offices, at the local library, or online at IRS.gov. The IRS can be reached by phone at 800.829.4933.
• A completed Estate Account application.

All documents above can be  sent through our secure email system or be given to a representative at an HVCU branch.

Specific concerns or questions regarding your responsibility as an estate administrator, the probate process, or the estate settlement process should be referred to an attorney, financial advisor, or probate court official.

In the event that the individual was not a member of HVCU at the time of death, HVCU permits the executor/administrator to open an Estate Account, provided all beneficiaries/heirs of the estate are members of the credit union. The estate executor/administrator does not have to be a member of HVCU or be eligible for membership to open an Estate Account.

We’re Here to Help

Contact information:

• Phone: 845.463.3011
• Mail:
  Hudson Valley Credit Union,
  ATTN: Member Support Services
  PO Box 1071
  Poughkeepsie, NY 12602-1071
• Email
• Branch: Visit your nearest branch location to speak with a representative who can help you through this process.

An executor, also known as a personal representative or administrator, is responsible for carrying out or “executing” the Will’s instructions. Most often, an individual executor can easily settle a simple estate on his or her own. However, a large or complicated estate may require legal advice. The probate court usually requires an executor/administrator to be bonded to protect all interested parties against fraud, embezzlement or negligence by the executor/administrator. If you are named executor/administrator, it is your responsibility to ensure that debts or obligations are paid and that distribution of the remaining assets to heirs are completed.

The following is a checklist of the typical duties of an executor when settling an estate:

• Consult an attorney and a certified public accountant (CPA) about your duties as executor.

While not required, checking with these professionals is helpful because they are familiar with local probate procedures and the steps required to settle an estate.

• File the Will and initiate probate.

As executor/administrator, it is your responsibility to file a Will with the appropriate state probate court and petition the court for “letters testamentary.” These court documents may also be called “letters of administration” or by another name. These documents provide legal proof that you are the executor of the estate. You should get several certified copies of these court documents, as they may be requested when handling certain financial transactions for the estate.

• Request several copies of the death certificate.

You will need certified copies of the death certificate to conduct estate business. These certified copies usually cost between $5 and $25 each, depending on the jurisdiction. They can be obtained from the County Clerk’s Office in the county of the deceased’s death, or the funeral director may order them for you.

• Retitle property if necessary.

If the estate includes property, such as unencumbered automobiles, boats, other vehicles or real estate, you can transfer titles either to the named beneficiary or to yourself as executor. If no beneficiary is designated, you may, as executor, decide to sell the property and add the proceeds to the estate. HVCU will require a certified copy of the death certificate and letters of administration for any real estate actions. You should seek the advice of an attorney before you decide to sell or retitle the property.

• List any indebtedness.

As executor, it is your responsibility to pay off any debts at the time of the deceased’s death. You must notify all creditors of the death so they can stop any deductions and invite them to submit claims to the estate. Usually, each state sets a time limit for creditors to submit claims. Some things to look for are:

• utility payments or bills
• hospital, doctor or other medical expenses
• loan payments or bills
• credit card payments or bills
• cell phone/internet service provider

• Notify Depositors.

Notify any companies that electronically deposit funds to the decedent’s account. Inform them of the account holder’s death so they can stop the deposits. Here are some you may need to notify:

• Social Security or other Federal recurring deposit
• Pension/401k
• Payroll
• Insurance Companies (i.e. Annuity Payments)

Note: Electronically deposited funds solely in the decedent's name presented after the date of death may be returned to the originator.

• Close credit union, bank and investment accounts, and open an Estate Account.

You should close any account owned solely by the deceased and transfer those assets to an account that will allow you to settle the deceased’s bills and other obligations. An HVCU Estate Account can be used for this purpose. You should seek the advice of an attorney before you open an Estate Account.

• Locate insurance policies and file claims.

Life insurance benefits are usually payable to designated beneficiaries and are not part of the estate. To file claims, you need the policy numbers, full name of the deceased, and certified copies of the death certificate.

• File taxes.

Federal and state taxes for the deceased will need to be filed for the year in which they passed away and for the year the Estate Account is closed. Consult the IRS or a CPA for assistance. You should also seek the advice of an attorney.

• Close the Estate Account and distribute the remaining assets to beneficiaries.

After making sure all estate debts have been paid, you can distribute any remaining assets to the beneficiaries and close the Estate Account. You should seek the advice of an attorney before you close an Estate Account.