RELEASE DATE: JUNE 27, 2022
DURATION: 98 minutes
Accounts may be established to hold funds of an owner that are managed by someone other than the owner of the funds. The most common example is a Living Trust, but other forms of fiduciary accounts also can be established at the credit union such as Representative Payees, VA Federal Fiduciary, UTMAs, Court ordered/Blocked accounts; Coogan, Conservatorships and Guardianships. Knowing how these types of fiduciary accounts (aka “agency” accounts) work is critical.
The credit union must understand how these accounts may be established – from what (if any) paperwork is required, to membership and tax ID issues as well as the operation of these accounts going forward. In this session, we outline:
- Who must a member or eligible for membership (and the ramifications for a fiduciary for an improper account)
- What taxpayer identification number should be used and how to properly report on a 1099-INT
- When would we want to obtain a Certification of Trust
- How title to these accounts should be held
- Why establishing Court-ordered blocked account may represent risk to the credit union
- Which account turns over to a minor at a certain age and which require action on the part of the fiduciary
This session is designed for anyone establishing memberships or new accounts, tellers and member service representatives, call center personnel, managers, audit and compliance.
MEET THE PRESENTER
Mary-Lou Heighes is President and founder of Compliance Plus, Inc., which has been helping financial institutions with the development of compliance programs since 2000. She provides compliance training all over the country for various trade associations and financial institutions, and also speaks at numerous financial institution conferences throughout the country. Mary-Lou has been an instructor at regulatory compliance schools and conducts dozens of webinars for organizations throughout the country.