Estate Retirements of Member Credits
What happens to your remaining member credits when you die?
URE offers several ways to handle your member credits after death. The method you choose affects who receives the money and when it will be paid out.
General Rules
Before any member credits are paid out:
Any unpaid balance on the account must be cleared. If the account is not cleared, the credits will be held against the debt.
The electric account must be removed from the deceased’s name. If the property will be sold eventually, we recommend the estate administrator consider putting the electric account in his/her name temporarily.
Estate Distribution
The surviving spouse, next of kin, or estate executor will provide a death certificate or obituary to URE. In some cases we may also ask for a copy of the will. Once this information is received an affidavit that we send will need to be signed.
On the affidavit there will be two payout options:
Standard payout – member credits are given back in their entirety under the normal retirement (cash back) schedule of the cooperative.
Immediate lump sum payout – member credits are given back at a reduced (discounted) value. The discounted amount is calculated based on the current retirement schedule and number of years in place at the time of death.
The traditional method of retirement upon death is through an estate – member credits are an asset subject to probate. To avoid having to go through probate, you can opt to designate primary and contingent beneficiary(ies).
Payable on Death (POD) Beneficiary
Members can fill out a POD form to name up to four primary and two contingent beneficiaries.
Upon death, member credits are distributed equally among the primary beneficiaries.
A member may change designated beneficiaries by filing a new form or may cancel a POD form by notifying the cooperative in writing.
It is up to the member to keep the information on the POD form current. This would include mailing addresses of the beneficiaries. A POD form cannot be completed by a member’s power of attorney.
What happens if no one claims your member credits after you die?
Unclaimed member credits of deceased members are subject to forfeiture just as general retirement member credits are. There are times we do not learn of a member’s death until years afterward. Once we are notified of a member’s death and the process to give back the member credits begins, the heirs have six months to complete the affidavit and any required paperwork. If the paperwork is not completed within that timeframe, updated documents may be required. It’s a good idea to mention to those who will be responsible for your affairs that you are or were a URE member and there could be member credits among your assets to be claimed.
If you have questions regarding the various methods of handling member credits at death, please contact our office. Planning and communication now about your wishes when you are gone, could be very helpful to your family or heirs.