Living Trusts and FDIC Insurance

How much of my money is covered by the FDIC?

• FDIC insurance covers up to $250,000 per depositor per insured bank.
• The insured coverage limitation applies to all accounts held at the insured bank: Savings accounts, Certificates of Deposit, Checking accounts, etc.
• Jointly owned accounts increase the coverage to $500,000. However, only one joint account is covered per banking institution. Even if you have one joint account and additional single accounts, the maximum you and the joint-account holder will be insured is $500,000.
• IRAs are insured for up to $250,000 per depositor per insured bank.

What benefits do Living Trusts give me with the FDIC insurance?

• In a bank account under a formal trust, each trustor is insured $250,000 per beneficiary. For example, if a husband and wife in a jointly held trust each name their two children as beneficiaries, the FDIC would insure the trust at each bank for $1,000,000, or $500,000 per trustor.
• Coverage for the owner of a trust is for six months after his or her death; however, coverage for a beneficiary lapses immediately upon death.
  
• There is a limit of $1,250,000 per bank for each account owner.

Are my investment accounts covered by the FDIC?

• No, only standard banking accounts are covered, whether or not they are included in a trust.

The information is true to the best of our knowledge and current as of January 9, 2009. Please be sure to check with a banking professional or attorney for more information before making any financial decisions.