Whether or not the missing contents of CU agreement trump basic common law merger of ownership upon death of one jtwros owner is beyond my crystal ball.
Thank you for the responses thus far.
As a girlfriend, I am aware that I have no personal legal interest in the matter.
I just was hopeing to hear that my BF had some rights to recoup funeral expenses (which exceed the acct balances).
It sounds like that is not the case...
He should ask the credit union to justify their actions. Credit unions often have broad rights of offset (where they can take from one account a person holds to pay the debt of a different account that person holds). That doesnít mean itís a certainty in this situation although quite possible. If they have no such rights expressed within their shareholders agreement, they wouldnít have a right to seize the funds under the law.
The language for the right to offset is probably listed in the documents for the loan.
If you know how much money was in the accounts, subtract from that the amount that was owed on the loan, and if there is excess left over, then if it is worth fighting for, hire an attorney to go after what was left, which most likely the greedy credit union is not entitled to keep.
IF somebody actually knows the factual sequence ...the answer might be easier ?
WHen does ownership vest with survivor ?
WHen does CUs right of set off arise ?
WHich came first ?
The asset devolves at the time of death
The credit unionís right of offset would be based on the terms the account holder agreed to so basically, their rights are in existence at the time of establishing the account.
All of this will be based on whether the CU has either;
A right of offset that supercedes the law
A probable claim of clear and convincing evidence the money was intended to be used to pay the loan.
Both of those will be based on the claims of the credit union so op needs to speak with the credit union.