How does the Emergency Economic Stabilization Act of 2008 increase affect revocable trust accounts where the owner has more than $500,000 in one FDIC-insured institution and has named more than five different beneficiaries in the revocable trust(s)? Before, the maximum coverage is the greater of either $500,000 or the aggregate amount of all the beneficiaries' proportional interests in the revocable trust(s), limited to $100,000 per beneficiary. Does this now mean that, for instance, instead of $500,000 (5 beneficiaries x $100,000) that it may have gone to $1,250,000 (5 beneficiaries x $250,000)? Or to $2,500,000 if 10 beneficiaries are involved?

Oops, just asked basically the same question on another thread..

Anything 500k or less will be considered equal beneficial interest even if not. It will be figured 250k per bene. If it is over 500k with more then 5 benes the trust language will be looked at to determine equal or unequal interest. If equal 250k x as many bene as there are listed. If unequal the greater of total aggr. amount or 500k. Another words, 500k is the minimum coverage on these trusts over 500k, more then 5 benes and unequal interest.

You might want to look at the FDIC's revised FIL from today on the deposit insurance changes to revocable trust accounts. http://www.fdic.gov/news/news/financial/2008/fil08099.html

Thanks Read Regs,

I was wondering if they were going to up it.