Trust & Custodial Accounts

Most NEFCU savings accounts – Share Savings, Term Certificate, Tuition Builder and Super Saver – as well as Checking accounts, can be set up with a Trust or Custodial account relationship. A sound way to plan for the future:

• Trust Accounts (also known as payable on death, or POD, accounts) avoid probate because the asset passes to the beneficiary upon death of the account holder
  
• Custodial Accounts are generally set up by parents or grandparents under a child’s social security number. The custodian manages the funds until the child turns 18, when the account is then turned over to the child. The funds are used for the benefit of the minor, although the custodian has signing authority on the account.