Co-Trustee of Trust Deceased/FDIC Ins Coverage

Posted By: Compliance Lover

Co-Trustee of Trust Deceased/FDIC Ins Coverage - 09/29/08 08:18 PM

We spoke to FDIC this morning, but are just more confused than ever. On a trust account, my understanding is it is insured $100,000 per beneficiary. Our customer's trust account totals $210,000 with the husband/co-trustee on the account deceased years ago. The trust was never re-done. There is one beneficiary on the trust agreement. We also have a POD account on the wife with the same beneficiary as the trust agreement. The beneficiary is not a relative, but I don't believe as of Friday that matters. That account has a $20,000 balance. We were told by the first person we talked to at FDIC that all accounts were covered. ($200,000 on the Trust and $200,000 on the POD account). Our employee called right back and got someone else, and they told her something different. They made it sound like the trust still being in the husband's name as co-trustee made a difference. I may have to call them back myself, but does anybody have an answer or opinion? Thanks.
Posted By: nbk2yj2

Re: Co-Trustee of Trust Deceased/FDIC Ins Coverage - 09/29/08 10:08 PM

If it is the same one owner and and same one bene for both (which is what it sounds like)

There is 230k balance between both trusts (formal and informal, same category of ownership) Looks like your coverage is 100k

This leaves 130k uninsured

Anyone else feel free to correct me.
Posted By: BBoyd

Re: Co-Trustee of Trust Deceased/FDIC Ins Coverage - 09/29/08 11:30 PM

Is the Trust a revocable trust or an irrevocable trust? It's my understanding that a revocable trust and POD account are in the same ownership category. If the owner and beneficiary are the same on both; funds would only be insured to $100,000. If the trust is an irrevocable trust, it's in a separate category and would be insured.
Posted By: Compliance Lover

Re: Co-Trustee of Trust Deceased/FDIC Ins Coverage - 09/30/08 02:03 PM

It is revocable. I would think only $100,000. I don't know why the FDIC asked about the deceased husband who was a trustee. They made it sound like since she hadn't re-done it since his death, that would make it $100,000 coverage for the wife and $100,000 for the beneficiary.