POD Beneficiaries Allocable By % - Long Term, High Rate?

daf999999 | Aug 17, 2023 | 13 posts since 2012

I'm looking to stash a Jumbo amount of cash for as long as possible (4-5+) but would like to insure as much as I can by adding POD beneficiaries who get only 1% (for example, kid 1 gets 49%, kid 2 gets 49%, brother gets 1%, cousin gets 1% -- vs 25% each).

That info is typically available only by talking to CSRs which takes a lot of time. Anybody care to share their knowledge on this issue - I can tell you that GTE offers only equal allocation.

Thanks

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Answers

SouthernGirl | Aug 18, 2023 | 210 posts since 2022

daf999999,
FYI, you can find this information, on any post by Ken Tumin, under Funding and Other Details, then Beneficiaries. As an example, All in CU states, "unlimited, percentages can be assigned". However, their rate is too low right now. Consider, GTE for $400K at 5.12% for 4 years for beneficiaries with equal percentages and other institutions for $400K with higher rates for 5 years for beneficiaries with equal percentages. You may need to consider the amount of interest to be posted to each cd to be fully insured. Latino CU has 5.10% for 4 years and 5.00% for 5 years, with equal percentages. United States Senate Federal CU offers unlimited percentages. However, it is difficult to get an account approved and a hard credit pull. US Senate Federal CU offers a 36 month through 47 month CD at 5.23%. FedChoice Federal CU offers unlimited percentages and 4.75%(plus .25% with checking account) for 5 years.

betaguy | Aug 17, 2023 | 180 posts since 2022

if it were me, I'd just set up 3 different accounts.

daf999999 | Aug 17, 2023 | 13 posts since 2012

Sorry, I don’t understand. How does that get me the goal of increasing FDIC coverage by adding 1%beneficiaries? I don’t want brother or cousin to get more than 1% of total upon death.

betaguy | Aug 17, 2023 | 180 posts since 2022

sorry. I misunderstood your post.

Ally6770 | Aug 18, 2023 | 4,292 posts since 2010

I would call the FDIC or NCUA first. I believe the NCUA now only allows 5 beneficiaries and the FDIC will start on April 1, 2024. Email or call. They are very responsive. I like the emails because you have written verification.

TTL1 | Aug 18, 2023 | 9 posts since 2020

I didn't see anyone answer your question. That would probably depend on what the individual banks policy is. You couldn't break it up or you wouldn't get the jumbo rate. Curious to see what you come up with. I'm going to check with my cu's to see what they say.

choice1 | Aug 18, 2023 | 370 posts since 2023

Good Qs but there is a threshold Q: Will you be able to get a hardcopy/proof of how the FI holds/labels the title of your account? For example USBank will not give you any evidence of what their records reflect!

Ltssharon | Aug 20, 2023 | 471 posts since 2020

True that. I took a friend with me and asked to see my poa papers with my safety deposit box. They would not. My friend said we wanted to at least look at the originals for a few minutes . So the manager left us alone with the originals for. A few minutes and I took pictures on my iPhone (sneaking). Us bank was saying my 2 Poas were no longer legal and they would need to come in again and sign. The poas are traveling business owners with families of their own, and each live 3000 miles away. Us bank would not allow them to get a signed notary at any other location. Stay away from them with anything important.

choice1 | Aug 20, 2023 | 370 posts since 2023

Sounds like someone is practicing law w/o a license. I surmise an attorney would take this but unfortunately US Bank puts you through this. What follows is from a google,

“Many state laws require banks and credit unions to accept POAs except under certain circumstances: for example, if the bank or credit union believes the POA is forged, knows that the POA was revoked, or believes that the person who created the POA is being abused or exploited by the agent.

If you continue to meet resistance, you may be able to get a court order mandating acceptance of the POA – and the person refusing to honor it may have to pay your attorney’s fees and the costs of taking him or her to court.…”

Ally6770 | Aug 20, 2023 | 4,292 posts since 2010

In Michigan the laws have changed. We had our POA's made in 1995 and now the POA's have to sign papers that they know and have read the Michigan law and will abide by them. They know what the penalties are. There was abuse by POA's and people used as trustees. I just read of a trustee that filled out the wrong papers for a tax refund and they lost getting the refund. Not sure how that would happen but that was what the article said. It also said make sure
that the person you name as your trustee knows the laws and the forms to use.

choice1 | Aug 20, 2023 | 370 posts since 2023

But not retroactive!

Ally6770 | Aug 21, 2023 | 4,292 posts since 2010

The law is not retroactive but some places in Michigan will not accept the POA unless the new papers are signed by the POA's named in the new Michigan law.

choice1 | Aug 21, 2023 | 370 posts since 2023

The case of failure to honor (remember capacity, etc is determined at time of execution) could also be good for punitive damages too especially if the individual no longer has capacity…. If a POA is challenged there, the challenger is challenging, in effect, capacity…which is wrong!
And a week later the flavor of the month changes…keep changing the internal rule which do not comply with law and deprives people the right to use a lawful document…how is an attorney years later going to opine on facts!

me1004 | Aug 21, 2023 | 1,379 posts since 2010

This thread is about POD, and now it suddenly changed to POA!

POA has always been an issue with the bank. I do find now they less often require you to use their form. But they will still impose various requirements that are quite burdensome to impose on a POA agent. I have a friend as POA, I can't be having her run around to get her signature notarized every time I move a CD to a new place. GTE Finanical is requiring that I pay a lawyer to write an opinion letter saying my POA is fully valid in my state where it was created. They say I cannont have the POA unless they get that letter.

It costs too much for such a letter from a lawyer! I proved the matter to them, my POA form is actually the very form that is included as an example in my state's POA statute! I showed them the statute. GTE does not care, they want the lawyer opinion letter as a matter of protection from any liabiliity. If they make the deicison it is valid in my state, they are liable; if a lawyer from my state gives them that opinion, they are protected from liability. This is ridiculous. I have proven beyond a doubt that the form is valid, they can see that bettet than a lawyer opinion, my form IS the law in my state, it is actually in the statute as how to do it. GTE doesn't care.

choice1 | Aug 21, 2023 | 370 posts since 2023

Finally, why anyone would use those FIs for business dealings when/where POAs are used extensively was overlooked

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