Credit union terminology
Primary, joint owner, payable on death and power of attorney are common terms you might hear and see when you open up an account with SouthPoint. Adding these to your account without fully understanding what they mean can seem overwhelming. Let’s take a closer look at the definitions so you can better understand credit union terminology and ensure that you understand what we are asking.
A joint account is set up with a primary member (who’s Social Security Number is listed first) and a joint owner. While the joint owner can deposit funds, withdraw funds, check balances and conduct the same business as a primary member, only the primary member is eligible to vote at our annual meeting and will receive the end of year tax information on that account.
Power of Attorney
A power of attorney (POA) is a legal instrument that is used to delegate authority to another individual. It’s best to speak with an attorney to determine what will fit your needs.
Payable on Death
Payable on death is when a member names a beneficiary or multiple beneficiaries to their account. In the event of the member’s death, the funds of the account are disbursed to those named persons. The Credit Union is not required to seek out the beneficiaries on accounts. If none are listed or they have passed away prior to the primary owner, funds become part of the account holders estate.
Our Financial Service Representatives are here to help you with setting up new accounts and assist you with understanding the above terminology. You also have the option to include legal representation in these transactions if you would like. The staff at SouthPoint are here to work with you from start to finish with every new account you open, so don’t be afraid to ask questions.