§ 32203 - Trust deposits; payment on death of trustee - Vermont Statutes

§ 32203. Trust deposits; payment on death of trustee

(a) When a deposit is made in a credit union by one or more persons in trust for another, the name and residence of the person for whom the deposit is made shall be disclosed, and the deposit shall be credited to the depositor or depositors as trustee for such person.

(b)(1) The credit union may accept deposits:

(A) in the name of a member in trust for a member beneficiary;

(B) in the name of a member in trust for a nonmember beneficiary; or

(C) in the name of a nonmember trustee for a beneficiary who is a member.

(2) No beneficiary or trustee, unless a member in his or her own right, shall be permitted to vote, obtain loans, or hold office, or be required to pay an entrance or membership fee.

(c) When other notice of the existence and terms of a legal trust is not given in writing to the credit union, at the death of the trustee, or if there is more than one trustee, at the death of the surviving trustee, the deposit or any part thereof, with the interest thereon, may be paid to the person for whom the deposit was made or to his or her estate. (Added 2005, No. 16, § 1, eff. July 1, 2005.)