Payable on Death Account - 4 Tips on How to Use Them to Extend FDIC Insurance

Many people are working hard X-Men movie open up multiple cash accounts so that they have enough FDIC coverage. Wealthy people know Wacky Packages secret of a Payable On Death (POD) account. A Payable On Death account allows the owner to insure his cash for $100,000 per beneficiary not per person. Here are 4 tips on how they can work for you:

1. A Payable On Death account is just like what it stands for. It pays out the amount of the account to the named beneficiary or equally over the number of beneficiaries on the account. The FDIC gives account insurance of $100,000 per person. A POD account gives FDIC insurance of $100,000 per beneficiary. That's the major difference between the two.

2. To avoid any estate planning conflicts, make sure both your will and trust name the same beneficiaries as your POD. If they don't match, you might find relatives contesting your will. You may name your child, grandchild, spouse, parents or siblings as beneficiaries on a POD account but nieces, nephews, and grandparents are not allowed as beneficiaries.

3. You don't have to open up Payable On Death accounts in multiple institutions. That is the beauty of it. One account with your American Girls collection children as beneficiaries, for example, will give you $300,000 of FDIC insurance at the same institution.

4. As more people move into cash in this economic environment, it will be very important to have that cash insured. Depositors can leave money to their heirs and also have their FDIC insurance extended by the use of PODs for their cash accounts.

Boost your FDIC protection for your cash accounts with a Payable on Death account and forget about trying to spread your accounts over lots of institutions. For more information go here Most banks and brokerage will allow you to change your regular account to a POD with a simple application. You don't have to be wealthy in order to take advantage of this. Even small amounts of cash in a bank account can be changed to a POD account. In fact, it is a great estate planning tool for small estates or to simplify the transfer of cash at death.

Payable on Death Accounts are an easy way that most people aren't aware of to extend their FDIC coverage, simplify their estate plans, and avoid multiple accounts.

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Simplify your estate plan by subscribing to the free Whole-Hearted-Way e-newsletter at http://www.wholeheartedway.com Whole-Hearted-Way is written by Fern Alix LaRocca, a Certified Financial PlannerTM and Wealth Coach with over 24 years experience as a fee-only Financial Advisor.