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Earlier this year, the Maine Legislature passed legislation (LD 968) which makes changes to the state’s banking code. The changes will impact credit union operations as it relates to the establishment of multiple-party accounts when the new law goes into effect on January 1, 2019.
After the first of the New Year, the below disclosure question must be stated in writing on your credit union form and signed by each party to the account prior to opening.
“Do you intend for the sum remaining upon your death to belong to the surviving party or parties? Yes or No.”
To remain compliant, your credit union will need to have the appropriate documentation in place and recorded when opening multiple-party accounts or changing a single-party account to a multiple-party account.
To help Maine credit unions remain complaint, Synergent, your League’s service subsidiary, has absorbed the cost and created a model form that will allow credit unions to appropriately document their member’s intent for any reallocation of funds in a joint account upon their death.
For those credit unions working with Synergent, the company has already begun utilizing the new reporting form in Episys and will archive the document once a completed form is downloaded into the system. Synergent client forms will also contain a disclaimer that notes an account may not be opened if a member checks the “no” box.
On December 12, Synergent, the League, and the League’s General Counsel Dan Cummings, hosted a conference call for credit unions to answer questions surrounding the legislation’s implementation. Tyler Hudson, Synergent Associate Vice President of Development and Elise Baldacci, League Vice President of Governmental Affair are available to address concerns about LD 968 if issues arise.