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Trust Accounts

Trust accounts are set up to ensure that after you’re gone, your assets are distributed the way you see fit. Even if you already have a will, your assets may face costly probate fees before they’re distributed to your family and other beneficiaries. With a trust account, your loved ones will get access to the funds with much less hassle.  Here are just a few reasons why a Trust Account may be a great fit for you:

  • Perfect account for estate planning
  • Available with savings, checking and certificate accounts
  • No maximum balance limit
  • Protect your assets from probate and estate taxes
  • Deposit is insured up to $250,000 by NCUA

We offer a variety of accounts to suit your needs:

Custodial Accounts

Custodial accounts are useful for members when they have special legal responsibilities. The account is established by a Custodian acting as Executor (estate account), Administrator, or Guardian for a Principal.

A Custodial Account is opened using the Social Security Number of the individual who owns the funds (the Principal) or the Tax I. D. Number of the estate.

Power of Attorney

The purpose of a power of attorney is to appoint an agent for the principal. The individual (or company) who executes it is the principal. The person the principal appoints to act on his behalf is called the attorney-in-fact.

While POAs may come in different forms, the Uniform Statutory Form Power of Attorney Act provides a uniform form (as the name implies) to be used for POAs that is straightforward and easy to understand. The principal simply initials the powers he/she wishes to bestow upon the attorney-in-fact and crosses through (or fails to initial) the rest. You may obtain this form from your attorney or via the internet.

Trust Accounts

There are various types of trust accounts – each with a different purpose.

It is important to note that the credit union does not have a Trust Department and is prohibited by law from acting in the capacity of Trustee. We will not accept legal liability for administering a Trust Account. We will only follow the instructions given to us on the documents opening the account with us.

Uniform Trust To Minors Accounts

For tax and other reasons, parents, grandparents and others sometimes want to transfer ownership of cash and other financial assets to children who are too young to handle such assets. One way to do this is to establish a Trust Account. The Uniform Transfers to Minors Act (or Uniform Gifts to Minors Act) provides an alternative that may be simpler, cheaper and faster than a trust.

Regardless of the state in which the member and minor reside, when a minor applies for a Savings account with us, it is issued under the provisions of the “State of Maryland’s Uniform Gifts or Uniform Transfers to Minors Act.” Anyone can open a UTMA account using the name and TIN of the minor. A UTMA account is a restricted account, which means that the custodian is the only individual that has access to this account

Either the custodian or the minor (beneficiary) must be eligible for membership in the credit union.