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#1058968 - 10/06/08 06:10 PM $250,000 and Trust Accounts!!
Anonymous
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I wanted to post this in response to a question in the Deposits and Payments thread, but I am having trouble logging on so hopefully someone can repost this there. I was looking at EDIE today and located this:

Second, the new rules provide for a streamlined method of calculating insurance coverage depending on the number of beneficiaries who are entitled to receive the deposits when the trust owner (or owners) dies. Specifically, the rules provide that:

For Revocable Trusts with Five or Fewer Beneficiaries: All revocable trust deposits belonging to one trust owner are insured up to $250,000 times the number of beneficiaries. For example, if a revocable trust owner has one beneficiary, his or her maximum coverage is $250,000 for all trust deposits at the same insured bank. If a revocable trust owner has five beneficiaries, his or her maximum coverage is $1,250,000 for all trust deposits at the same insured bank.

For Revocable Trusts with Six or More Beneficiaries: All revocable trust deposits belonging to one trust owner are insured to the greater of either $1,250,000 or the aggregate amount of all the beneficiariesí actual proportional interests in the revocable trust(s), up to a maximum of $250,000 per beneficiary.

So, it looks like FDIC is no longer looking at the dollar amount, but the number of beneficiaries?? Hopefully they issue something soon regarding this...

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#1059007 - 10/06/08 06:51 PM Re: $250,000 and Trust Accounts!! Anonymous
Pickles Offline
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Joined: Apr 2006
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Beach Bum, East Coast, USA
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#1059013 - 10/06/08 06:55 PM Re: $250,000 and Trust Accounts!! Pickles
Anonymous
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Yes, but that still references the $100,000 insurance and $500,000 threshold. EDIE is now calculating it with a $1,250,000 threshold. See the thread I linked to in my original post.

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#1059170 - 10/06/08 08:11 PM Re: $250,000 and Trust Accounts!! Anonymous
#Just Jay Offline
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#Just Jay
Joined: Oct 2006
Posts: 14,389
Cheeseheadland
Pickles, that is dated prior to the law changes this past Friday.
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