As an affluent American, it’s essential to stay updated on the latest changes affecting your bank deposits. Recently, the Federal Deposit Insurance Corporation (FDIC) implemented new rules that could impact the amount of insurance coverage you have on your trust accounts.
Under the new rules, the FDIC will now cap insurance on trust accounts at $1.25 million, compared to the previous lack of limit. Trust accounts are legal arrangements that ensure your assets are distributed to specific beneficiaries, and this change aims to make it easier for consumers and bankers to understand deposit insurance rules.
This change could affect tens of thousands of bank customers, potentially lowering the amount of insured funds in their accounts if their financial institution fails. It may be necessary for those impacted to restructure their deposits or open new accounts at another bank to ensure their funds are fully protected.
At Extreme Investor Network, we understand the importance of maximizing your deposit insurance coverage and protecting your assets. While the FDIC still insures up to $250,000 per depositor per account category at each bank, the new rules have introduced limitations on trust accounts and merged revocable and irrevocable trusts into a single ownership category.
This means that trust accounts can now only insure up to $1.25 million, with a limit of five beneficiaries receiving the $250,000 insurance amount. If you previously had multiple beneficiaries on your trust account, you may need to reassess your deposit insurance coverage to ensure your funds are adequately protected.
To determine if you’re affected by these changes, you can use the FDIC’s Electronic Deposit Insurance Estimator tool to see how much of your money exceeds the new coverage limits on a per-bank basis. If you find that some of your funds are no longer insured, don’t hesitate to reach out to your bank for assistance in finding the best solutions to protect your deposits.
At Extreme Investor Network, we strive to keep you informed about important financial changes that could impact your assets and investments. Stay connected with us for expert insights and guidance on navigating the evolving landscape of finance and wealth management.
