Common use of Trust Account Designation Clause in Contracts

Trust Account Designation. A Payable on Death (POD) account or trust account designation is an instruction to the credit union that a single or multiple party account so designated is payable to the owner(s) during his, her, or their lifetimes and, when the last account owner dies, payable to any named and surviving POD or trust beneficiary/payee. Accounts payable to more than one surviving beneficiary/payee are owned jointly by such beneficiaries/payees without rights of survivorship. Any POD or trust beneficiary/payee designation shall not apply to Individual Retirement Accounts (IRAs) which are governed by a separate beneficiary/payee designation. We are not obligated to notify any beneficiary/payee of the existence of any account or the vesting of the beneficiary/payee’s interest in any account, except as otherwise provided by law. Single Account An account in the name of a depositor only. Joint Account With Right of Survivorship An account in the name of two or more depositors and which provides that the funds of a deceased depositor become the property of one or more of the surviving depositors. All joint accounts are joint with right of survivorship unless otherwise designated by the account holder(s).