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The latest Q & A on a compliance issue, as provided by the League’s General Counsel at Norman, Hanson & DeTroy.
Question: We have a Member with a share and share draft account. Someone with Letters of Guardianship from a Probate Court has appeared at the Credit Union and has asked that all funds in the share draft account be withdrawn. Is the Credit Union authorized to provide the funds to the Guardian?
Answer: No. The Probate Code provides that if no Conservator has been appointed, then the Guardian may exercise certain limited rights regarding the ward’s property, namely, “Receive money and tangible property deliverable to the ward and apply the money and property for support, care and education of the ward.” This is insufficient to authorize access to funds in an account; and consequently, Letters of Guardianship do not authorize a Guardian to withdraw funds. Rather, the Credit Union should be looking for Letters of Conservatorship or a Power of Attorney form before providing account information or funds from a ward’s account.
For more compliance news, please visit League INFOSight through the Destination Compliance section of the Maine CU League’s website.