Qualifying Beneficiaries For New Fdic Insurance Limits

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For a revocable trust to be covered under FDIC insurance under the old 2004 FDIC guidelines, the qualifying beneficiaries named within the trust had to be the account owner's spouse, children, parents, grandchildren, or sibling.

However, this rule caused much confusion for trust account deposit coverage amounts, and resulted in multiple inquiries about FDIC coverage.

Attempting to both modernize the FDIC and to simplify the FDIC guidelines, the FDIC changed its rules, doing away with the requirement of a qualifying beneficiary.

Now any named beneficiary of a living trust qualifies for FDIC insurance coverage-coverage that has been recently raised to $250,000 per beneficiary (if five or fewer) up to a maximum coverage for the account of $1,250,000.

What this means for you, as a living trust account owner:

- FDIC insurance will cover your trust account assets up to $250,000 per beneficiary if you have five or fewer beneficiaries (with a limit of $1,250,000 per account and per bank), even if the trust is for a non-profit or charity organization or your beneficiary is someone other than a spouse or family member.

- As of October 2008, with the passage of the Emergency Economic Stabilization Act of 2008, FDIC insurance coverage amount limits have been raised from their previous amount of $100,000 per beneficiary (with a limit of $500,000 per account and per bank) to higher limits of up to $250,000 per beneficiary (with a limit of $1,250,000 per account and per bank).

Despite the recent economic turmoil that has erupted in our nation and around the world, there has never been a better time to set up a revocable trust or living trust for your estate planning long-term goals.

With the new FDIC insurance legislation, you can rest assured that not only are your trust assets safe but also are they covered to an even greater amount than before.

This gives your beneficiaries greater economic security compared to holding those assets in your individual name. What better gift could you give to a loved one than the promise of a stable economic future?

However, because economic conditions change, it is vital that you confer with your California estate planning attorney regularly to ensure your plan is secure.

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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