How Do FDIC Insurance Coverage Limits Apply When It Comes to Trusts?
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Q. I saw a sign about FDIC insurance at the bank yesterday and it got me to thinking about our family’s trust, and I was hoping you could provide some clarification. My understanding is that the FDIC insures up to $250,000 per depositor in eligible accounts at FDIC insured banks. That’s straightforward enough for regular individual accounts, but how does this apply to trust accounts? What if we have a
$400,000 trust account with two beneficiaries? Would that mean that $150,000 of the trust is uninsured? What I’m unclear about is whether the insurance limit applies to the trust as a whole, or the individual beneficiaries of the trust? Are the rules different for revocable and irrevocable trusts? Thanks for your help!
Critter Corner: Tips for Seniors for Financial Literacy Month
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I am a caregiver for my 82-year-old mother. Sometimes she could use help with making financial decisions. What tips can you offer to me as a caregiver and to her as someone who still handles her own finances? Also, I have two children in their late 20's, and neither one of them is very financially savvy. Do you have any recommendations for how to teach adult children to be financially responsible and
make better financial decisions?
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Certified Elder Law Attorney and Medicaid Asset Protection Expert, Evan H. Farr, CELA, has written four best-selling books in the field of elder law. For more information and to order, click here.
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