At F&M Bank, we seek to help you understand the differences between the types of account ownership, but ultimately it is your sole responsibility to determine the full legal effect of maintaining the type of account ownership you choose. .
INDIVIDUAL ACCOUNT
An individual account is an account held by one person. When the account holder dies, ownership of the funds passes, subject to applicable law, to the account holder’s estate. If the account, however, is designated as payable on death (POD), the funds will be distributed to the beneficiaries of the account.
JOINT ACCOUNTS
A joint account is held by two or more people. The following applies to joint accounts:
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SURVIVAL RIGHTS: When an owner dies, all funds in the account will be transferred to the surviving owners. Where there is only one surviving account holder, the account will be treated as an individual account, with funds passing to the estate of the last deceased holder, unless the account is designated as payable on death (POD ).
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ACCOUNT CONTROL: Any owner may conduct business transactions on the account without restriction or notification to other owners. Any owner can withdraw or transfer funds, close the account or request a stop payment, for example. F&M Bank is under no obligation to notify an owner of the activity of another owner on the account, but all owners have the right to obtain information about the activity of that account.
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ACCOUNT RESPONSIBILITY: If the account is overdrawn, foreclosed or otherwise compromised, all owners, regardless of who initiates or benefits from a transaction, are equally and legally responsible for the activity of the account.
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OWNERSHIP CHANGES: To maintain a clear and succinct property line, the removal of any living owner will require the closing and reopening of the joint account in question with a new account number under the new owner designation. In the event of the death of an owner, however, the surviving owner (s) may maintain the same account; we recommend that they modify the checking account to remove the name of the deceased owner by providing a death certificate; the amended account contract will require the signatures of all surviving parties.
TRUST ACCOUNTS: Trust accounts help manage and distribute your assets as you see fit and avoid probate upon your death. We encourage clients to consult with their attorneys regarding establishing and maintaining a trust if you believe it could be of benefit to you. Since a trust is recognized as a legal entity separate from the individual trustees, any instrument payable to the trust or to persons appointed as the trustee or representative of the trust must be deposited in an account entitled to the trust or negotiated by an endorsement. special.
CUSTODY ACCOUNTS: Accounts held under the Uniform Transfer to Minors Act (UTMA) allow a custodian, usually a parent or legal guardian, to manage funds held in the minor’s name and tax identification number. Although the funds belong to the minor, only the custodian has account authorization until they decide to close the account and transfer the funds directly to the account holder. The Commonwealth of Virginia only allows two custodians per account.
REPRESENTATIVE BENEFICIARY ACCOUNTS: A recipient of Social Security or SSI funds who is unable to manage their own finances may have a beneficiary representative (Rep Payee) appointed for them by the social security administration. The beneficiary owns the funds but does not have transaction authorization on the account; only the beneficiary representative can carry out transactions. The designated representative will be responsible for receiving and managing funds, and is responsible for using these funds for the care of the beneficiary. Only Social Security or SSI funds can be received into the account; no other funds can be combined. Upon the death of a beneficiary representative, a new beneficiary representative must be appointed to act on behalf of the beneficiary. On the death of the beneficiary, the funds are payable to their estate and the authorization of the beneficiary representative is no longer valid. To open a beneficiary representative account, we need a copy of the letter from the Social Security administration and a valid government issued ID for the beneficiary and the beneficiary representative.
ESTATE ACCOUNTS: To set up an estate account, we need the death certificate and credentials from the court appointing the executor or administrator of the deceased. The estate’s EIN can be obtained from the IRS at WWW.IRS.GOV .
ACCOUNT DESIGNATIONS
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PAYABLE ON DEATH: Individual or joint account holders can designate beneficiaries for their accounts, with funds in the account payable on death (POD) of the last surviving holder. Any living beneficiary should be prepared to provide valid government-issued identification and an official copy of the owner’s death certificate. Funds designated as POD are not included in the owner’s estate.
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AUTHORIZED SIGNATORY: An authorized signing officer designated by individual or joint account holders may conduct business transactions on behalf of the holder (s), but does not own the account for their own personal benefit. The account owner is ultimately responsible for the activity of the signing authority’s account and may remove an authorized signing officer at the owner’s discretion. The authorized signing officer, however, cannot affect any change in ownership of the account. PLEASE NOTE that the power granted by the owner (s) ceases with the death of the last owner; no transactions are authorized after the date of the owner’s death.
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PROXY: F&M Bank recommends that any person acting as proxy (POA) or de facto agent (AIF) be represented as such in the account agreement. An agent or agents designated as a POA by an individual or by joint account holders may transact on behalf of the holder (s), but do not own the account for their own personal benefit. Any access or control of the account will be determined by the POA document itself. Again, the power granted by the power of attorney ends with the death of the owner granting this power.
An authorized signing officer or POA must be identified by full regulatory compliance.
Disclaimer
F&M Bank Corp. published this content on October 29, 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on October 29, 2021 06:01:07 PM UTC.
Public now 2021
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Evolution of the income statement
