September 26th, 2008
The FDIC annoucned today an interim rule that makes it much, much easier to determine coverage for Recovable Trust Accounts, also known as payable-on-death (POD) or living trust accounts. I wrote a fairly lengthy article dealing with this.
Before today, you had to have qualifying beneficiaries on the account. Now, the beneficiary can be anyone, the bank’s records just need to specify who they are.
If you have uninsured funds at any bank you can ask the bank to retitle the CD as a POD acccount and add the number of beneficiares you need to cover the account. POD accounts are insured up to $100,000 per beneficiary, assuming each beneficiary has equal proportional interest.
Unfortunately, a big reason for this may be the expected increase in bank failures and before the interim rule, it was quite a time consuming task for the FDIC to determine if the account was covered or not. Many people had the return of their funds delayed.
If any of you need a beneficiary, I will gladly volunteer my services.
Here is a link to the announcement on the FDIC’s website.
Have a great weekend.
-- By +Chris Duncan