Originally Posted by ShokWaveRider
I think Credit unions are the way to go for that reason. We have $600k insurance with 2 Credit unions. That is enough for sure.
It appears that FDIC has similar insurance protection.
I use POD to increase my protection at my CU.
I got this off the FDIC website.
Revocable Trust Accounts
These are deposits held in either a payable-on-death account or a living trust account.
Payable-on-death (POD) accounts – also known as testamentary or Totten Trust accounts – are the most common form of revocable trust deposits. These informal revocable trusts are created when the account owner signs an agreement – usually part of the bank’s signature card – stating that the funds will be payable to a beneficiary upon the owner’s death.
Living trusts – also known as family trusts – are formal revocable trusts created for estate planning purposes. The owner controls the funds in the trust during his or her lifetime. Upon the owner’s death, the trust generally becomes irrevocable.
If certain conditions are met, revocable trust accounts are insured up to $100,000 per owner for each “qualifying” beneficiary.
Qualifying beneficiaries are the owner’s spouse, child, grandchild, parent, or sibling. Adopted and step children, grandchildren, parents, and siblings also qualify. Others including in-laws, cousins, nieces and nephews, friends and organizations (including charities) do not qualify.
Note that living trust coverage is based on the interests of qualifying beneficiaries who would become entitled to receive trust assets when the trust owner dies (or if the trust is jointly owned, when the last owner dies). This means that, when determining coverage, the FDIC will ignore any trust beneficiary who would have an interest in the trust assets only after another living beneficiary dies.
The account title for a revocable trust account must include a term such as “payable on death,” “in trust for,” “living trust,” “family trust,” or similar language or an acronym (such as “POD” or “ITF”) to indicate the existence of a trust relationship. In addition, for POD accounts, the beneficiaries must be identified by name in the bank’s account records.
The example below applies only to POD accounts. Deposit insurance coverage may be different for some living trusts. For more information on living trust accounts, refer to the FDIC resources on the back of this brochure.
Bill has a $100,000 POD account with his wife Sue as beneficiary. Sue has a $100,000 POD account with Bill as beneficiary. In addition, Bill and Sue jointly have a $600,000 POD account with their three children as beneficiaries.
Account Title Account Balance Amount Insured Amount Uninsured
Bill POD to Sue $ 100,000 $ 100,000 $ 0
Sue POD to Bill $ 100,000 $ 100,000 $ 0
Bill & Sue POD to 3 children $ 600,000 $ 600,000 $ 0
Total $ 800,000 $ 800,000 $ 0
These three accounts totaling $800,000 are fully insured because each owner is entitled to $100,000 of deposit insurance coverage per qualifying beneficiary. Bill has $400,000 of insurance coverage ($100,000 for each qualifying beneficiary – his wife and three children). Sue also has $400,000 of insurance coverage ($100,000 for each qualifying beneficiary – her husband and three children).