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I Posted Wrong Information And Can't Remember What Posting It Was On.

Ally6770
  |     |   4,310 posts since 2010

I think I may have posted that the 5 beneficiaries is the rule now but it will start on April 1 2024.

Deposit insurance on accounts can only have 5 beneficiaries and this will It start in banks April 1 2024. So if you have more beneficiaries on your accounts you may want to change things before April 1, of 2024. No matter how many accounts you have at that institution and try to have less than 5 on each account your maximum insurance will still be a maximum of $1,250,000 insurance. So combining accounts in one institution will, as we age, will no longer be a choice if we want insurance. Below is from a FDIC site and I also had a follow up phone call. %'s on more than 5 beneficiaries will not work for more insurance. For formal trusts you will have to call them about the new rules. This is from the FDIC site.

All the rules discussed in this brochure are current through March 31, 2024. The rules for revocable trust accounts (including formal trusts, POD/ITF) and irrevocable trust accounts discussed in this brochure will change on April 1, 2024. For most trust depositors (those with less than $1,250,000), the FDIC expects the coverage levels to be unchanged. Changes to the rules for mortgage servicing accounts will also take effect on April 1, 2024. In addition, we suggest depositors and bankers review the new rules when considering opening large trust deposits in accounts with maturities beyond April 1, 2024.

Questions?

You can submit your inquiry using the FDIC Information and Support Center.

You can also call the FDIC at (877) 275-3342 or (877) ASK-FDIC.

For the hearing impaired call (800) 877-8339.

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me1004
  |     |   1,381 posts since 2010
I gather it is not that you can't have more than five beneficiaries, it is that you won't get more insurance coverage for the extra ones? Frankly, I thought $1.25 milion was the maximum already. I think it is saying that if you don't have more than $1.25 million in a single bank, you do not need to pay any attention to this?
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Ally6770
  |     |   4,310 posts since 2010
I just asked for my friend about their situation that I was asked if I would call and get the question answered.

I have just 2 beneficiaries on my accounts so I keep it so that it will be under $500,000 when the CD's mature as I am combining accounts. So that is all I know. I am not sure if accounts are put in any type of trust how that it would apply to this but assume it is the same law. Best to get an email from them for your specific question that you can then print the question and answer all on one page if you have questions. You will then have a name of the person who answered your question, the question and answer on the same page to put in your file or with your papers. You also will be able to reply if there is something you don't understand or want a further explanation on the reply. I print mine out, make copies and put them in a notebook that I have for me and for each of the beneficiaries and update the notebooks inserts when necessary and give them the page that needs to be replaced. I have a 3 ring notebook with 11 tabs. One tab is for all the accounts with the bank account numbers, phone numbers, each website link and copies in each institution letterheads that they are the beneficiaries on each account. But I am much older, I assume, than many readers of this site and I want to make it easier for the beneficiaries when I pass. I used to use a magnet and put the account numbers with beneficiaries inside of the door my husbands gun safe for him if I passed first and his notebook on one of the shelves and updated is the accounts changed. Now that he has passed I have the notebooks with all the info for POA and for after my death. I have the original and the beneficiaries each have the copies. And because I chase rates and am older I am seeing which institution only work with their own POA forms and not one for your own state. You will want one for each type of account and what they can and cannot do for closing it, moving it, if they can change beneficiaries which is a no for me and if yes in what situation and any other permission you want to get the person or persons who is or are the POA. How if the CD's mature if they can change instituions or if they are reinvested in another place if you want the POA to change the beneficiaries even or put it for a longer or shorter period or go for the highest interest etc. Some places have very specific information on their forms. When you go to a new place ask them if they accept your POA from your state of if you need one specific to their institution.
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