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Re-Titleing Account

Wednesday, September 1, 2010 - 5:37 PMPacific Mercantile Bank - Details
Unfortunately I have to re-title my account because of the death of my husband.  Most banks want to re-title my account from a joint account with the right of survivorship, to an individual account with POD beneficiaries.  The FDIC does not recognize an individual account with beneficiaries.  To the FDIC, an individual account is just that and has no beneficiaries and is insured for 250k.  An account with POD beneficiaries is considered by the FDIC to be an informal revocable trust account and has to be titled that way in order to get the added amount of insurance that the beneficiaries would provide. What a mess.  Has anyone run up against this and figured a way out?  Jennie
JennieJennie3 posts since
Sep 1, 2010
Rep Points: 18
1. Wednesday, September 1, 2010 - 6:00 PM
Sorry about your loss.

I would suggest that you post this issue also at (Finance), there are several lawyers there.  Good luck.
51hh51hh1,476 posts since
Jan 16, 2010
Rep Points: 6,427
2. Thursday, September 2, 2010 - 9:48 AM
To get the additional FDIC insurance of a revocable trust account, theoretically all you need is
  • POD in the title of the account
  • named living beneficiaries for the account
See the specifics on revocable trust ownership category on the FDIC website:

The full information on FDIC insurance can be found here:

Hope this helps!
ravrav36 posts since
Apr 21, 2010
Rep Points: 148
3. Thursday, September 2, 2010 - 9:56 AM
Sorry, I posted that before I wrote the "in practice" part.

In practice, I've found that several banks do not have a different account type, per se, in their software to indicate that the account is a revocable trust vs. an individual account.  To attempt to meet the FDIC requirements, I've had them change the title on the account from "FIRSTNAME LASTNAME" to "FIRSTNAME LASTNAME POD", as well as designate specific living POD beneficiaries.

I'm not a lawyer, but that seems to meet the requirements as written in the comprehensive FDIC insurance brochure.

ravrav36 posts since
Apr 21, 2010
Rep Points: 148