Notifying the FDIC when someone dies

The FDIC insures a deceased person's accounts as if they were still alive for 6 months after death. During this grace period, insurance coverage does not change unless accounts are restructured. After 6 months, coverage reverts to the new owner's limits based on ownership category.

Joint accounts receive $250,000 in FDIC coverage per co-owner. When one co-owner dies, the 6-month grace period preserves the deceased's share of coverage. After 6 months, the surviving co-owner's deposits are recalculated under their individual ownership categories.

No. The 6-month grace period only applies when the account owner dies. If a POD (payable-on-death) or revocable trust account beneficiary dies, coverage is reduced immediately. For example, if an account has two POD beneficiaries and one dies, coverage drops from $500,000 to $250,000 right away.

If an FDIC-insured bank fails during the 6-month grace period, the FDIC treats the deceased as still alive for insurance purposes. Coverage is calculated using the account structure as of the date of failure. Insured deposits are typically paid the next business day.

No. If the bank is operating normally, contact the bank directly to handle the deceased's accounts. The FDIC only becomes involved if the bank fails. In a bank failure, insured deposits are paid automatically — you do not need to file a claim for amounts within the $250,000 limit.