Fdic Protects Living Trusts

Fdic Protects Living Trusts

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For many, 2008 has been a crash course in realizing that America's economy might be at risk. Compounded by the subprime mortgage crisis and the resulting government buyout of Fannie Mae and Freddie Mac, consumers and investors became even more wary when companies such as Lehman Brothers went under.

The week following the passing of the Emergency Economic Stabilization Act of 2008 saw stock markets around the globe plummet and consumer confidence in the banking industry reach its lowest point since the Great Depression. As the stock market fell, investors saw losses in their retirement accounts. So worried eyes scanned the future, their confidence shaken.

This, combined with a lowered consumer confidence in America's banks, prompted many to withdraw money from their accounts, thereby continuing the downward economic spiral. Although these events are similar to those causing the Great Depression, the United States now has a layer of protection that wasn't around during the early 1930's-the FDIC.

The Federal Deposit Insurance Corporation (FDIC) is a government entity that insures deposits made at member banks, including deposits held in revocable trust, or "living trust" accounts. Recently, current insurance coverage limits have been raised. Now each trust account is insured for up to $250,000 per beneficiary of a trust, up to $1,250,000 per account with some limitations. Holders of these trusts can know that their estate planning will be protected, even in situations of economic crisis.

If you have created a living trust as part of your estate plan and want to ensure the financial well-being of your loved ones in the event of your death, navigating the complex FDIC coverage deposit rules is key to achieving the extra peace of mind you need. This recent experience has shown us all that economic conditions change, sometimes rapidly. So it is important, even vital, to keep your estate plan current, so no matter the economic conditions, you'll be protected.

We urge you to meet with your estate planning attorney and examine your estate plan as soon as possible. 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.

If you would like more information concerning your estate planning options, or how to set up an FCIC-insured revocable trust or "living trust" account, Estate Planning Specialists is a comprehensive online resource for personal wealth management solutions through wills and revocable trusts.

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.



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