Sunday, September 10, 2023
Almost every funded trust has one or more bank accounts, most of which are insured by the FDIC. The FDIC has issued new regulations effective April 1, 2024, changing how bank accounts held in the name of a trust will be insured. It will treat both revocable and irrevocable trusts the same for determining the limits on insurance. Such accounts may be insured up to $1.25 million rather than the current $250,000 limit on many individual accounts.
For more information see Matthew F. Erskine “FDIC Changes Insurance Coverage of Trust Bank Accounts” WealthManagement.com, August 21, 2023.
Special thanks to Deborah Matthews (Virginia Estate Planning Attorney) for bringing this article to my attention.