When an RVEC member passes away, we must address any accumulated Capital Credits associated with their membership. How those credits are handled depends on whether the membership is held jointly or solely in the deceased member's name.
Joint Memberships
If an RVEC membership is held jointly and one account holder passes away, all accumulated Capital Credits remain with the surviving account holder. The credits do not need to go through the deceased member's estate.
The surviving account holder should contact RVEC to update the membership records and provide any required documentation.
Memberships Held in One Person's Name
If the membership is held solely in the deceased member's name, a surviving family member or the estate's legally authorized representative should contact RVEC to discuss the available options.
The membership must be either transferred to an eligible individual's name or closed. There are two options for handling the deceased member's outstanding Capital Credits:
Option 1: Request Early Retirement
RVEC's Board of Directors has established a policy allowing the deceased member's outstanding Capital Credits to be retired early and paid to the estate or its legally authorized representative.
Early retirement allows the estate to receive payment sooner rather than waiting for RVEC's normal retirement schedule. However, the payment amount is discounted to reflect the benefit of receiving the funds earlier.
To request early retirement, the estate's legally authorized representative must contact RVEC to obtain the required paperwork and instructions. A completed and notarized Capital Credits estate affidavit is required.
Option 2: Keep Capital Credits on the Regular Retirement Schedule
The estate may choose not to request early retirement. In this case, the outstanding Capital Credits remain on RVEC's books and will be retired according to the cooperative's normal retirement schedule, without the early-payment discount.
If you select this option, the membership must be transferred out of the deceased member's name to an eligible individual, or otherwise closed, as applicable.
How Do I Get Started?
If you are handling the affairs of a deceased RVEC member, please contact our office. We can explain the available options, answer your questions, and provide the necessary paperwork.
We understand that taking care of these details after losing a loved one can be difficult. We are here to help guide you through the process.
Contact RVEC:
712.659.3649 / 800.253.6211 or email morgank@rvec.coop