FDIC Insurance Coverage For Living Trust Accounts

A living trust or family trust is a revocable trust which names beneficiaries to receive the trust assets when the owner dies. The funds in these accounts are insured by the FDIC up to one hundred thousand dollars per beneficiary of each owner if certain requirements are met. For example, a husband and wife who co-own a living trust can specify that upon the death of one spouse, the funds will pass to the surviving spouse and upon the death the last owner the funds will pass to three children equally. The trust deposit account will be insured up to six hundred thousand dollars, which breaks down to one hundred thousand dollars per child from each the mother and father, or two hundred thousand dollars per child. now there are certain limitations to these rules and the trust must be set up properly. For instance, the account title at the bank must indicate that the account is held by a living trust or a family trust, and only certain family members qualify as covered beneficiaries. For more information about how to setup a living trust account or other matters regarding assets, discuss your situation with a qualified estate planning attorney