The FDIC has issued final regulations that, as of April 1, 2024, will change how bank accounts held in the name of a trust will be insured. This rule change treats both revocable and irrevocable trust the same for determining the limits on insurance. Often clients do not think about the limits on FDIC insurance when opening a trust bank account, but it is important to consider how the accounts, and the trusts, are set up as it can mean the difference between having as much as $1,250,000 insured for each account, rather than the $250,000 limit on individual accounts.
Right now, the FID treats revocable and irrevocable trusts[1] differently.
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