Totten Trusts/POD bank accounts

What is the name of your state (only U.S. law)? Louisiana

The informtion on FDIC.gov is that an individual's bank savings account balance over $100,000.00 may be insured if that balance is labeled "POD" account, or other identifying terms, with qualified beneficiaries identified on the signature card. Louisianians are not entitled to do that. What Louisiana law or policy barricades Louisianians from this simple entitlement? To protect such excess savings, Louisianians must move money to another bank, or, to allow the deposit to remain, must safeguard it by forming a Totten trust, in writing, which, in turn, requires a lawyer, or a good set of forms, or a notary, or all three.

What Louisiana law should be changed to line Louisiana up with the rest of the United States?What is the name of your state (only U.S. law)?

I don't know the exact reason but the theory of law in LA might explain. LA is a civil law state. The only one in the U.S. This means everything is statutory. Perhaps there is no statute allowing such a designation. If so, all you would need to do is have the legislature allow it. The reason other states can do is based on the history and tradition of common law regarding trusts. A specific law is not needed because that's just the way it's been done for a long, long time.

SSpils said:

What is the name of your state (only U.S. law)? Louisiana

.....What Louisiana law or policy barricades Louisianians from this simple entitlement? To protect such excess savings, Louisianians must move money to another bank, or, to allow the deposit to remain, must safeguard it by forming a Totten trust, in writing, which, in turn, requires a lawyer, or a good set of forms, or a notary, or all three.

What Louisiana law should be changed to line Louisiana up with the rest of the United States?What is the name of your state (only U.S. law)?

Click to expand...

I can't comment on POD designations in Louisiana. I thought that all states allowed them, but could be wrong.

However, I don't know where you got the information that a Totten Trust "..requires a lawyer, or a good set of forms, or a notary, or all three." Totten Trusts were always known as the "poor man's trust" because of their simplicity and informality. Same procedure as for setting up an account with a POD - go to the bank and complete the form. The POD has largely replaced Totten Trusts. Don't see many anymore, except for very old accounts.