Bank savings account & beneficiaries
If I have beneficiaries on bank savings account & money market account, but no up to date will, is the money safe if I die? I was listening today, June 14, and I think you said those accounts wouldn’t be accessible without a will. I always thought the beneficiaries would get the money, even if no will. Love hearing you on WGN! Thanks.
Terry Says
If your account has a POD designation, it would go directly to those named. But the total assets will still be part of your estate although there is no Federal estate tax until your assets total nearly $12 million. but assuming you live in Illinois, the Federal estate tax starts when you assets exceed $4 million.
And I think that radio discussion revolved around FDIC insurance. To learn those limits, read this:
https://www.fdic.gov/resources/deposit-insurance/financial-products-insured/index.html
Thus, although you have designated a beneficiary with a POD, the account remains in your name — and subject to FDIC limits for all your accounts. By contrast, creating a Revocable Living Trust extends the FDIC insurance to $250,000 for each named beneficiaryof the trust.
