The FDIC has implemented new coverage rules that take effect today and only affect trusts accounts that have over $250,000 deposited at a single bank.
FDIC rules had previously permitted a single trust account (such as a payable on death account, revocable trust or irrevocable trust) to have virtually infinite number of beneficiaries, with each beneficiary treated as separately insured and covered to $250,000.
While the new rules do not limited the number of beneficiaries in a trust account, the total aggregate coverage of the trust account, regardless of whether the money is allocated to savings or CDs, is now limited to $1.25 million.
Learn more about FDIC coverage here.
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