The Federal Insurance Deposit Corporation, or FDIC, implemented new requirements for deposit insurance for trust accounts starting April 1.
FDIC insurance generally covers $250,000 per depositor, per bank, in each account ownership category.
How FDIC coverage of trust accounts has changedUnder the new rules, trust deposits are now limited to $1.25 million in FDIC coverage per trust owner per insured depository institution.
Each beneficiary of the trust may have a $250,000 insurance limit for up to five beneficiaries.
However, if there are more than five beneficiaries, the FDIC coverage limit for the trust account remains $1.25 million.
Persons:
Jamie Grill, Ken Tumin, Tumin, —
Organizations:
Federal Insurance Deposit Corporation, FDIC