If Your Spouse Dies, These 3 Things Happen to the Joint Account — Half of It Loses Cover

Six months. That is how long the insurance on a joint bank account stays the way it was after one owner dies — and then it changes, without a letter, without a phone call, and without anybody at the bank being required to raise it. A joint account is insured for $250,000 per owner. Two names, $500,000 protected. When one owner dies the FDIC keeps treating the account as though both were living, but only for six months. After that it becomes a single account with one limit. The FDIC's own example: a $500,000 joint account, one owner dies, nothing changed in six months — $250,000 uninsured. Three things happen to a joint bank account when a husband or a wife dies: 1. The insurance holds for six months, then half of it is no longer covered 2. Closing the account is the common mistake — money is still arriving, bills are still leaving, and a closed account cannot be reopened 3. The protection that kept this money out of court came from the second name. With one name left, it is gone until a payable-on-death form puts it back Everything here is the general federal rule on deposit insurance. Banks differ, states differ, and your own case is decided by the paperwork at your branch. This is general information, not legal or financial advice. Check your own accounts with your bank, and use the FDIC's free EDIE calculator to see exactly what is covered. 00:00 The clock nobody starts in front of you 01:00 Who this lands on 01:30 One. Six months, then half of it is not covered 05:10 Two. Close that account and you cannot open it again 08:00 Three. Two names kept you out of court. Now there is one 10:40 The one thread running through all three 11:30 What this does not cover, and the three said quickly #JointBankAccount #FDIC #SeniorFinance #WidowFinances #EstatePlanning #BankAccounts #RetirementMoney #DepositInsurance #SurvivingSpouse #Seniors65