Removing Barriers Blog

Burdensome Affidavit Requirement Near Removal in Louisiana
Posted May 06, 2016 by Chandler Schuette

Recently, H 724, passed the Louisiana legislature and was sent to Governor Edwards for signature. Currently if a member dies, Louisiana law requires that member to have a signed affidavit on file naming their beneficiaries in order to disburse the member’s funds to them. The Louisiana Credit Union League-supported measure removes the affidavit requirement and permits members to merely name their beneficiaries in the credit union’s records.

Some of the arguments against the current affidavit requirement include:

  • Obtaining the affidavit is burdensome for credit union members (and credit unions, who must review it and determine whether it’s “in authentic form”);
  • The affidavit requirement could discourage members from naming a POD beneficiary and thereby increase the administrative burden on credit unions upon the death of a member;
  • The affidavit appears to be an arbitrary requirement;
  • There is no evidence of the value of an affidavit over simply naming a beneficiary;
  • Any perceived benefit of the affidavit is outweighed by the burden of obtaining and reviewing it; and
  • The affidavit requirement is unnecessary as the same result could be accomplished by simply naming a beneficiary without an affidavit