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#1241433 - 08/28/09 05:39 PM POD Beneficiary ON a trust (not to a trust)
KerryVBC Offline
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KerryVBC
Joined: Oct 2007
Posts: 151
Colorado
The general rule at our bank is that no trust accounts can list a payable on death (POD) beneficiary on them. However,(I have been told)that the FDIC booklet says that a trust must list POD (or similar language) and the beneficiaries in the account title to qualify under that category of insurance. How do we properly title a trust account so that it falls under the insurance qualifications of a trust? Does it matter what type of trust it is?
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#1241899 - 08/29/09 12:34 AM Re: POD Beneficiary ON a trust (not to a trust) KerryVBC
BetsyS Offline
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Joined: Jun 2009
Posts: 471
It depends on the type of trust. FDIC coverage on trust accounts is complicated. They list two ownership categories for trusts:

1. Revocable Trusts, which includes both informal trusts(account POD or ITF designation)and formal trusts (under written trust agreement, such as Living Trusts), and

2. Irrevocable Trusts.

The following is a link to their website which explains the ownership categories and requirements for coverage:

http://www.fdic.gov/deposit/deposits/insured/ownership.html
Last edited by BetsyS; 08/29/09 12:34 AM.
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#1241919 - 08/29/09 01:06 PM Re: POD Beneficiary ON a trust (not to a trust) KerryVBC
nbk2yj2 Offline
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Joined: Aug 2006
Posts: 629
Paradise!
The titling for a formal trust does not need to list the beneficiaries of the trust for the deposit insurance category to be recognized. The living revocable trust falls into the same deposit insurance category as the informal trust accounts (POD). It is the informal trust accounts that need the titling to specify POD.

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#1242063 - 08/31/09 03:33 PM Re: POD Beneficiary ON a trust (not to a trust) nbk2yj2
KerryVBC Offline
100 Club
KerryVBC
Joined: Oct 2007
Posts: 151
Colorado
Thank you.
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