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Joe
Burcke's Fabulously
Informative
Newsletter
October,
2008
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It's
10 O'clock. Do
you know where your
bank deposits are?
It's
almost Halloween and
it's a particularly
scary time this year.
"Everybody
knows " that
FDIC protects bank
deposits up to
$100,000.
Whenever you see
words like
"everybody
knows",
conventional wisdom
holds" or the
like, you can bank
(no pun intended) on
one thing for
certain: the
information that
follows is wrong.
This is certainly
the case when
discussing FDIC
insurance
protection.
Even as you read
this, congress, as
part of the Wall
Street Bail Out
may have increased
FDIC protection
from the fabled
$100,000 to
$250,000.
But even if
this relief is
provided by the
time you read this
newsletter, the
questions will
still remain for
many: "Just
how much of my
deposits are
protected?'
" Do I have
to go set up
different deposits
at different backs
to make sure that
I am
protected?"
Well, let's look
at the questions
starting with the
simplest of
questions first.
What deposits
are covered?
Only deposits in
FDIC insured
institutions are
covered/
This usually means
BANKS.
So, let's
immediately
exclude, brokerage
accounts,
moneymarket
accounts
maintained by
financial;
institutions other
than banks, mutual
funds, stocks,
bonds and most any
other type of
security you can
imagine.
If you
have any doubt as
to whether your
bank is FDIC
insured, ask them.
They won't lie.
It's against the
law.
What if I
have more than
$100,000 in any
one Bank?
Is the excess covered
or not?
The
answer, of
course, is:
"It
Depends".
FDIC $100,000
protection is
actually
afforded to
each account
owner, up to
five.
Now, before
you run out
and follow the
advice of Jane
Bryant to put
additional
names on your
account,
remember
adding
names to a
bank account
is the same
thing as
making a gift
of some or all
of the account
balance to
each person
added.
Why?
Because
adding
a name to a
bank account
conveys an
undivided
ownership
interest in
that account
to each
person added
to the
account.
Moreover,
each person
has the
ability to
withdraw all
of the
account
balance at
any time
without the
consent or
knowledge of
the other
joint
tenants to
the account.
So,
if I have
more than
$100,000 in
one bank,
how can I
acquire
additional
FDIC
protection
without
adding new
title
owners?
Glad you
asked.
Maintain
ownership
of your
bank
deposits
in a
Revocable
Living
Trust!
Why?
You
can
obtain
more
FDIC
protection
using
a
trust
account
(or a
P.O.D.
account)
by
utilizing
trust
ownership
of an
account.
Under
existing
FDIC
regulations,
the
$100,000
protection
is
afforded
to
each
holder
of an
interest
in the
account
up to
a
total
number
of
interest
holders
of
five
(5).
So, if
you
are
single
and
have
three
children
and
you
have
created
a
Living
Trust
that
names
your
children
as
beneficiaries
of the
trust
upon
your
death.
Your
actual
FDIC
protection
is
$400,000.
Assume
that
you
are
married
with
three
children
and
the
Account
your
bank
deposits
are
titled
in the
name
of
your
Joint
Living
Trust. Your
trust
provides
that
the
trust
property
is
held
for
your
respective
benefits
for
life
and
upon
the
death
of the
survivor,
the
remaining
balance
is
distributed
equally
among
your
three
children. Your
actual
FDIC
protection
is
actually
$800,000.
But if
you
had 5
children,
your
maximum
protection
would
stop
at $ 1
million.
You
and
your
spouse
are
accorded
ownership
through
your
joint
trust
and
each
of you
can
have
additional
parties
in
interest
up to
four
in
number.
So,
you
each
get to
count
your
self
and
you
each
get to
count
each
of
your
children.
up to
a
total
of 5.
Don't
believe
what I
am
saying
and
want
to see
for
yourself?
Go
to
my
www.Burckelaw.com and
check
out
the
FDIC
calculator
Next
Week
We'll
discuss
business
accounts!
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Published
periodically as the
spirit moves us.
We hope you find the
articles and news
notes included in
our newsletter to be
interesting
and pertinent to
your daily living.
If there is a topic
about which you
would like more
information, please
contact us and we
will be happy to
discuss your topic
of interest in a
future newsletter.
Sincerely,
Joseph R. Burcke,
Your Personal Family
Lawyer
Personal
Family Lawyer Joseph
R. Burcke has
devoted his legal
practice to helping
families preserve
and protect their
future and the
futures of their
children through
estate planning that
is tailored to each
family's economic
circumstances and
personal concerns.
From protecting your
children in the
event of your
catastrophic
injury to ensuring
their financial
well being in the
future, we strive
to protect you and
your loved ones
from dangers both
foreseeable and
unanticipated.
As concerned with
preserving your
family history,
values and life's
lessons learned
and communicating
these valuable
family assets to
future family
members, we
have helped
hundreds of families
gain peace of mind
through the
knowledge that
their values,
hopes and dreams
are communicated
to their children
and grandchildren
in a meaningful
way. After
all, a family's
history and values
are among their
most precious
assets.
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Testimonials
We really
appreciate
your prompt
response to
our
questions
and the way
you explained
something
that was
foreign to
us. It
made it
really easy
to
understand.
Linda L.
I feel so
much better
knowing that
no matter
what, my
kids will
always be
safe and
cared for by
people I
trust, not
strangers.
Mary T.
What a
relief!
Thanks for
taking the
time to
explain
everything. Before
I just knew
I had to do
something to
protect my
family. Now,
I understand
what needed
to be done
and why.
It's also
nice to know
that I and
my wife have
someone to
call on if
the need arises.
Tom M.
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Joseph
R. Burcke
Your
Personal
Family
Layer
7777 Bonhomme
Suite 1501
St. Louis, Missouri
314-863-7493
314-863-7494(fax)
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