Fdic Insurance Limits Have Recently Been Raised

Fdic Insurance Limits Have Recently Been Raised

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As of October 3, 2008, the FDIC insurance limits at each member bank have been temporarily raised from $100,000 to $250,000 per depositor. As part of the Emergency Economic Stabilization Act of 2008, these increased limits mean more security to your revocable trust or living trust account, as long as your account is held with an FDIC-insured bank.

Congress included this in the recently passed economic bailout package hoping to increase consumer and investor confidence in our nation's banks, since some banks have already collapsed in the economic downturn caused by the sub-prime lending crisis.

What does this mean for you and your estate planning options? And how can you be sure that the FDIC will insure your trust in the amount you need insured?

Essentially, if you are going to create a revocable trust or living trust, the following is true of FDIC insured accounts owned by your trust:

- Each beneficiary (up to five) is insured for up to $250,000. This means that there is a total amount of up to $1,250,000 that the FDIC will insure on your living trust account (provided you name five beneficiaries).

- New rules have granted FDIC coverage for any beneficiary on the account, regardless of relationship to the owner of the trust. Previously, only immediate family members were covered.

- If there is more than one owner of the trust account, the FDIC insurance limits apply per owner. Therefore, having a co-owner (including a spouse) can provide additional insurance on your living trust accounts within the FDIC rules.

For people interested in preserving their savings for their family and planning a secure and seamless transfer of that money at death, creating a revocable trust or living trust is a viable and fiscally sound option.

The FDIC insures accounts held in trust for even higher amounts, protecting your money even if the bank holding your trust account collapses. Your family's economic future will be protected, even when you are no longer able to protect them yourself.

This recent experience has shown us all that economic conditions change, sometimes rapidly. It is vitally important to keep your estate plan current, so no matter what the economic conditions, you will be protected.

Whether your estate planning goals are immediate or long-term, a qualified California estate planning attorney will be able to counsel you on the best options available to you to meet your individual needs.

About the Author:
Kevin Von Tungeln is the Managing Partner of EstatePlanningSpecialists.com and Thompson Von Tungeln, P.C. Kevin practices in the areas of estate planning, probate, wills, and trust administration. Visit www.EstatePlanningsSpecialists.com or www.linkedin.com/in/kevintungeln.



Article Originally Published On: http://www.articlesnatch.com


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