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FDIC Consumer News - Fall 2001
Special Report on FDIC Insurance
1. If you picked "False" you are correct.
PAYABLE-ON-DEATH (POD) AND OTHER REVOCABLE TRUST ACCOUNTS. The insurance rules
governing these types of deposit accounts where funds pass to specific
beneficiaries when the owner
dies (sometimes also called testamentary, Totten trust or In-Trust-For accounts)
can provide for
expanded insurance coverage, but the rules also can be complicated. Each
beneficiary's share of a POD
account can be insured up to $100,000 ($200,000 if there are two beneficiaries,
$300,000 if there are
three, and so on) but the beneficiary must be a "qualifying" beneficiary. That
is, the beneficiary must be
the grantor/depositor's spouse, child, grandchild, parent or sibling. Other
relatives, such as nieces,
nephews, cousins or in-laws, as well as friends, do not qualify the account for
the additional insurance
coverage provided to other POD accounts. What happens if you name a
non-qualifying beneficiary? The
portion payable to that person would be added to any accounts you have at the
bank in the single (or
individual) account category and the total will be insured to $100,000.
See full
story...
Back to the Quiz
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