3 ms·
This is not true. The $250k applies per ownership category for each owner, and a recipient of a trust is not considered an owner for these purposes.
by gamblor956 4y ago
This is not true.
The $250k applies per ownership category for each owner, and a recipient of a trust is not considered an owner for these purposes.
- tothrowaway 4y agoNot an expert, but it seems like it is true. Quoting page 11: """ When a revocable trust owner names five or fewer beneficiaries, the owner’s trust deposits are insured up to $250,000 for each unique beneficiary. This rule applies to the combined interests of all beneficiaries the owner has named in all formal and informal revocable trust accounts at the same bank. When there are five or fewer beneficiaries, maximum deposit insurance coverage for each trust owner is determined by multiplying $250,000 times the number of unique beneficiaries, regardless of the dollar amount or percentage allotted to each unique beneficiary. Therefore, a revocable trust with one owner and five unique beneficiaries is insured up to $1,250,000. """
- xnx 4y agoIt is confusing, but it does seem that designating beneficiaries increases the insurable amount. Examples in tables on this page: https://www.fdic.gov/resources/deposit-insurance/brochures/insured-deposits/index.html https://www.fdic.gov/resources/deposit-insurance/brochures/i...