Skip Navigation

Documents in Portable Document Format (PDF) require Adobe Acrobat Reader 5.0 or higher to view. Download Adobe© Acrobat Reader.

Menu icon Menu

Trust & Fiduciary Accounts

father carrying his daughter piggyback-style

Central One offers four special account options for members with specific needs.

Uniform Transfers to Minors Act (UTMA) Accounts

The UTMA Account is established for a child under the age of 21. A Custodian of legal age may set up a UTMA Account as an irrevocable gift to a minor. The minor would not be granted access to the funds until they turn 21. It's a popular choice for grandparents providing for the future of their grandchildren.

The funds in the account are controlled by the Custodian, but owned by and taxed to the minor. At the age of 21, with the Custodian's authorization, the minor is entitled to all the funds in the account.

Any adult may open an account as Custodian for a minor as long as the Custodian or minor is eligible for membership.

  • A UTMA Account is opened using the minor's Social Security Number.
  • A Check Card or ATM Card can be issued in the Custodian's name only.
  • Only the Custodian may transact business on the account and only for the benefit of the minor. The Internal Revenue Service (IRS) may require proof of this.
  • Loans are not available on a UTMA Account and funds cannot be used as collateral for a loan.

A Successor Custodian must be named when the account is opened. If the Custodian is unable to act as Custodian, resigns, dies, or becomes legally incapacitated, the Successor Custodian assumes responsibilities as Custodian. Successor custodian may be appointed and is revocable. It is strongly recommended that a successor custodian be named.

This account is federally insured separately from the Custodian and beneficiary's individual accounts by NCUA. All accounts created by the same Custodian for the same beneficiary are added together and insured for a maximum of $250,000.

Totten Accounts

The Totten Account is a great way to bequeath funds in your account should you die while still retaining full use of the funds. An individual (Trustee) establishes this account with named beneficiaries. This account is revocable - that is, the Trustee may change or cancel the designation of beneficiaries. The Trustee retains all power over the account.

  • The Trustee must be eligible for membership.
  • A Co-Trustee may also be named with access to the account.
  • A Trustee in the Trustee's name using the Trustee's Social Security Number opens a Totten Account.
  • A Check Card or ATM Card can be issued in the Trustee and Co-Trustee's name only.
  • Only the Trustee and Co-Trustee may transact business on the account. The beneficiary has no access to funds while either Trustee is living.
  • This is an informal trust and cannot be used as collateral for a loan.
  • To change or add beneficiaries, a Totten Designation of Beneficiary Form must be completed.
  • If there are Co-trustees and one dies, funds belong to the surviving Trustee. Funds belong to the beneficiary when neither Trustee is living.

This account is federally insured separately from the trustee's individual accounts by NCUA for each qualified beneficiary, if the beneficiary is the spouse, child, sibling, parent, or grandchild of the Trustee. If the beneficiary is not the spouse, child, or grandchild of the Trustee, the account is insured collectively with the owner's other share accounts, if applicable, up to $250,000.

Fiduciary Accounts

This type of account is useful for members when they have special legal responsibilities. The account is established by a Fiduciary. The account is held by an individual usually acting as Executor, Administrator, or Guardian Representative Payee.

  • The Fiduciary must be eligible for Membership.
  • Legal documentation must be furnished before the account can be opened.
  • A Fiduciary Account is opened using the Social Security Number of the individual who owns the funds or the Tax I.D. number of the estate.
  • A Check Card or ATM card can be issued in the Fiduciary's name only.
  • Loans are not available on a Fiduciary Account and funds cannot be used as collateral for loans.

This account is federally insured separately from other individual accounts owned by the Ward or Fiduciary, if applicable, up to $250,000, by NCUA. Funds held in multiple accounts in the name of a Guardian for the benefit of a Ward are added together and insured to $250,000.

All funds, held by an Executor or Administrator for a decedent, are added together and insured to $250,000 by NCUA. The Executor or Administrator's individual accounts are insured separately, if applicable.

Trust Accounts

A trust is a fiduciary relationship where one person (the Trustor) holds the title to property (the trust estate or trust property) for the benefit of another (the beneficiary). A Trustor, who also owns the funds in this account, establishes the Trust.

The Trust Account is established by a Trustee(s) who may or may not also be a Trustor(s). Legal documentation, the Trust Instrument, must exist to establish a Trust Account.

  • The Trustor(s) of a revocable trust must be a member.
  • The Trustor(s) or Beneficiary(ies) of an irrevocable trust must also be a member.
  • A Trust account is opened using the Trust's Tax Identification Number.
  • A Check Card or ATM card can be issued in the Trustee's name only.
  • Trustees have access to funds during the life of the Trust. The beneficiary has access to the funds, through the Trustees, only upon the death of the Trustors.
  • Loans are available and funds can be used as collateral for loans. The Trustees are individually obligated for the loan as well as the Trust.

This account is federally insured by NCUA. Each beneficiary's interest is insured separately from other accounts held by the Trustor, the Trustee, or the beneficiary, up to $250,000. When a beneficiary has an interest in more than one Trust set up by the same Trustor, the funds are added together and the beneficiary's aggregate insurance is a maximum of $250,000.

We cannot provide legal, tax, or estate planning advice. We suggest you discuss your particular situation with a tax consultant or advisor.

For more information

Contact Us

or call 800-527-1017