Question of the Week

Question: We have a member who has died and left their proceeds to a beneficiary. That beneficiary owes money to the credit union for charged-off loans and deposits accounts. Can we take that money?

Answer: No. You may not. The remedies that permit you to “offset” do not allow you to seize funds from a deceased person’s account for this purpose. The funds would need to be in an account owned by the beneficiary for you to exercise that remedy. As unfair as that is, you would be obliged to pay that account out to the beneficiary.