Edgewood, WA Real Estate Blog » Regulations http://edgewoodblog.com Musings, Resources, and Other Ramblings about real estate and home sales from the Real Estate Broker in Edgewood, Washington Mon, 05 Apr 2010 21:05:23 +0000 http://wordpress.org/?v=2.8.4 en hourly 1 How to correctly title your account for FDIC insurance purposes http://edgewoodblog.com/2008/06/04/how-to-correctly-title-your-account-for-fdic-insurance-purposes/ http://edgewoodblog.com/2008/06/04/how-to-correctly-title-your-account-for-fdic-insurance-purposes/#comments Wed, 04 Jun 2008 15:21:32 +0000 Lee Mason, The Masters Realty Group LLC http://edgewoodblog.com/?p=172 Due to the (marginal) increase in the risk of bank failures given the current credit mess (we’ve now had 4 bank failures so far this year), I included an article in my April Newsletter concerning FDIC insurance limits and making sure you’re adequately covered. Although the risks are small, it costs nothing to do it right and the ramifications could be huge.

I had a question this morning regarding how to properly title informal trust accounts, specifically payable on death accounts (POD). The question was what exactly needed to be in the account title to make sure FDIC insurance properly extended the coverage to the beneficiaries (in light of insurance coverage limits).

Although I included a general link to the FDIC site in the newsletter, I had trouble re-navigating the site to find the exact answer so I am providing it here as others may have similar questions.

FDIC insurance coverage and limits are a little obtuse, but again, it’s worth your time to get it right. My client’s bank had incorrectly titled an account (for FDIC insurance purposes) and only because my client had read the April newsletter did he have reason to question it.

If you have specific questions not answered on their web site, you can contact the FDIC here.

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