Posted on 09/30/2008 6:29:03 AM PDT by mlocher
Up until today, the FDIC rules provided that Payable On Death ("POD") accounts could be insured on a per beneficiary basis up to $100,000 per beneficiary, but only if the beneficiary was "qualifying." In order to be "qualifying," a beneficiary had to fall within one of five categories of relationships to the owner: the beneficiary had to be a spouse, child, grandchild, sibling or parent of the owner of the account.
[delete words on irrevocable trusts]
That has ALL CHANGED. The FDIC has adopted an interim rule amending the deposit insurance provisions on revocable trusts and payable on death accounts. It takes effect immediately (September 26, 2008). While the final language of the interim rule is not available yet,we do know the following:
The concept of qualifying beneficiaries is being eliminated
End of excerpt
I wonder if Barney Frank had anything to do with this?
How do they prove they are gay?
I have no use for Barney Frank, but I also think anybody should be able to leave his stuff (cash included) to anybody they want to.
An insured account should be insured, period, no matter who the beneficiary is.
. . . . .
FR Keyword: moneylist
This can be a high-volume ping list at times.
To join, send Freepmail to rabscuttle385.
Thank you for saying that. I agree.
I just can’t fathom any self respecting person (gay, straight, bi, tri, furry, transexual, hermaphrodite, eunuch, psychopath, etc) being the least bit attracted to Bawney..... that tingle Chris Matthews feels up his leg when Nobama speaks, is a cold chill up my spine when I hear Bawney open his yap
I agree - I was surprised at this announcement though - I kind of expected the opposite type of announcement in light of current banking problems - like restricting something instead of broadening it.
i loathe the guy [mr hotbottom, as you recall], but i agree that people should be able to leave $, belongings etc. to whomever they designate, regardless of relationship. not a gay/straight thing in my opinion, it’s a freedom thing.
No. FDIC will usually (NOTE THAT WORD USUALLY!) insure each account for $100,000. Their actual requirement can limit that to $100,000 per household.
That can be a big difference.
As soon as I have something close to 100,000 I’ll care about this...
Wow. Some people actually have $100,000 to put in a bank account? Guess I'm at the wrong job.
These new rules apply only to bank deposits. Credit unions have difference insurance and different rules. Both are federally insured.
I would talk to the lawyer that you are working with to set up the trust. You could talk to a banker, but you run the risk of getting a newly promoted teller who might not know the proper answer.
Yeah, while we’re at it, let’s make Social Security survivor benefits apply to gay couples as well... /s
Just say you are gay and all is well.
Why didn’t John Grisham think of that when he wrote the Testament? Problems solved!
Okay, so this looks like a good rule change. After all, it’s my money so I should be able to give it to who I want, right? I don’t want the govt telling me who gets my money.
The government is not telling you who gets your money. The government HAD been saying that if you die while your money is in a defaulted bank, then only a certain class of family members can get the insurance. Now they are saying that any beneficiaries get the insurance.
Like you, I think this is fair. However, the timing of this change is very sleazy. I do not have any proof at this point and I am still looking, but there is a possibility that this change is being done either under the cover of the financial crisis, or as part of a bail out plan. It appears to be a subtle way to get social changes legislated into our system that go beyond the bail out fiasco. How many more "gotchas" will there be?
Have you tried this site yet?
http://www.fdic.gov/edie/
I assume you've read the section on Revocable Trusts:
http://www.fdic.gov/deposit/deposits/insured/ownership4.html#revocable
And always remember, it's the bank's records that count, not your records.
Talking with our credit union, they claim we are covered up to $300,000 (under NCUA) for out living trust. Looking over the NCUA web site, I get either $200,000 or $300,000, depending on the interpretation of some of the language.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.