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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: When a member comes in with a Small Estate Affidavit and asks for funds from a deceased member’s account, may the credit union rely on that and provide the funds to the person who signed the Affidavit?
Answer: Yes. Under Maine law a person is allowed to collect a small estate upon presentation of a proper Small Estate Affidavit. The affidavit must state that: (1) the value of the entire estate, less liens and encumbrances, does not exceed $20,000; (2) thirty days have elapsed since the member’s death; (3) no application or petition for appointment of a Personal Representative is pending or has been granted; and (4) the person signing the affidavit is entitled to the payment of the funds. If such an affidavit is presented, then the law provides that the credit union “is discharged to the same extent as if [it] had dealt with a personal representative of” the Deceased Member once it has paid that person.
For more compliance news, please visit League INFOSight through the Maine CU League's website.