"d." <d[at]noospam.com> wrote in message
news:48baee5a.747968326[at]216.168.3.70...
- quote -

Misconception Number 10: An account for a deceased person's estate is
insured up to $100,000 for each person who will inherit money from the
estate.

Many people hear about the FDIC having per-beneficiary coverage for trust
accounts and automatically assume that a deceased person's estate account
will be protected by the FDIC for up to $100,000 per heir. But that is only
the case for deposits in revocable trust accounts with qualifying
beneficiaries (as well as certain irrevocable trust accounts, which we
haven't addressed here). Under the FDIC's rules, an estate account is
insured along with any individually owned account of the deceased person
(any checking accounts or CDs the person owned by himself or herself, and
not including IRAs) and the grand total would be insured to $100,000.



see http://www.fdic.gov/Consumers/consum...leadstory.html

------ Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.

"John A. Weeks III" <john[at]johnweeks.com> wrote in message
news:john-C43FC3.19270131082008[at]comcast.dca.giganews.com...
- quote -

Funny you should ask, since Indymac isn't even the latest failed bank where
uninsured depositors won't get everything back.

- quote -

http://www.fdic.gov/bank/individual/.../banklist.html

Checking the list of more recent failures, we see that depositors in First
Priority Bank are no better off than Indymac's depositors: "The FDIC will
pay uninsured depositors a liquidating dividend of 50% of any uninsured
money."
http://www.fdic.gov/bank/individual/...ml#over_100000

For the failure a week ago of the Columbian Bank and Trust, the FDIC is
still making a determination of how much you'll get.
http://www.fdic.gov/bank/individual/...ml#over_100000

Mark Freeland
nNeEwTs[at]nyc.rr.com

------ Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.

In article <hp8mb49b8ark3s9dkb1n4ehbqconijmcoi[at]4ax.com> ,
Douglas Johnson <post[at]classtech.com> wrote:

- quote -

The chance of winning the lottery is real, also. But like the chance
of losing money in a bank, it is so remote as to hardly be worth worrying
about it. Your chances of slipping in the bath or shower and hurting
yourself are far greater, as is your chance of getting hit by lightning,
being in an earthquake, or having your house burn down.

- quote -

So, that is one case in 10 years? Or is it 20 years?

- quote -

This is a whole different deal. Stock can go to zero. That is why
it is considered to be a higher risk instrument.

The bottom line is that it is so trivial easy to protect bank money
by spreading it around, and bank failures where folks lose money are
so extremely rare, that there is little need to lose sleep over it.
Or do something silly like keep large amounts of cash in your house.
Or buy gold. And spreading the rumor about losing money in banks
is a big disservice to everyone else. It frightens the uninformed
without giving them the alternatives, not to mention that it is a lie.

Go look at some statistics. The rate of autism is about 1 in every 150
babies. That is astounding. And 1 in 20 males will develop colorectal
cancer in their lifetimes. Those things seem like they are far more
important to worry about than the 1 in 10-trillion chance of losing
money at an FDIC insured bank.

-john-

--
================================================== ====================
John A. Weeks III 612-720-2854 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
================================================== ====================

------ Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.

"John A. Weeks III" <john[at]johnweeks.com> wrote:

- quote -

You definitely should be insured. Otherwise the chance of losing money is real.

From:
http://www.marketwatch.com/news/story/after-indymac-failure-sure-your/story.aspx?guid={05C812C6-7018-4105-89A0-6A75D8E62641}
talking about the Indymac failure:
"The 10,000 uninsured depositors will get 50 cents on the dollar now and wait
for the rest. "

I don't want to be a scare monger, but the risk is there. I've been reading
John Mauldin for six or seven years. He is no Chicken Little, but his last
week's letter will get you thinking:

http://www.frontlinethoughts.com/pdf/mwo082208.pdf

Basically, the thought is that Freddie and Fannie are toast. The Feds will
intervene to keep them operational, but the common and preferred stock will be
worthless. Banks are big holders of the preferred stock, so their capital will
seriously reduced and may bring down marginal banks.

-- Doug

------ Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.

Douglas Johnson <post[at]classtech.com> wrote:

- quote -

I can do that I suppose.. I just wondered since a single account will
have several ultimate beneficiaries will it only be covered for 100k?
It may well be that the estate is considered only one person. I don't
know at this point.

------ Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.

In article <48baee5a.747968326[at]216.168.3.70> , d[at]noospam.com (d.) wrote:

- quote -

How do you mean that? Our banking system is extremely solid, perhaps
the best it has been in all of human history. Your chances of losing
even a dime are so remote that one can hardly even think of a
science fiction plot where you would lose any money. You should
at least make sure that your accounts are insured, but there are far
more things to lose sleep over than the minute chance of losing money
at a bank.

-john-

--
================================================== ====================
John A. Weeks III * * * * * 612-720-2854 * * * * * *john[at]johnweeks.com
Newave Communications * * * * * * * * * * * * http://www.johnweeks.com
================================================== ====================

------ Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.

d[at]noospam.com (d.) wrote:

- quote -

Does it have to be one account? Divide it among as many banks as necessary to
stay under the $100K limit.
-- Doug

------ Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.

My wife very recently passed away and I am going to have to set up an
estate account for a year or two. Not a large estate but definitely
well over the FDIC 100k individual insurance limit. I don't recall
anything on their web page directly addressing this. I'll call the
FDIC tuesday, but I wondered if anyone here has considered this. I
suppose the main thing would be to set up the account at the safest
bank possible, considering the present state of the banking system

d.

------ Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.