FDIC Insurance Coverage for Trust Accounts
With the recent failure of IndyMac Bank and even large banks like Wachovia reporting astounding losses, some folks are becoming increasingly concerned about the safety of their money. As most everyone knows, the Federal Deposit Insurance Corporation (FDIC) covers cash deposit accounts up to $100,000 per person. Persons with over $100,000 in cash deposits often use multiple banks to obtain coverage for all or most of their money.
What about accounts in the name of trusts, since trusts generally have more than one beneficiary? Luckily, the FDIC has expanded coverage for trust accounts based on the number of beneficiaries. The FDIC website provides the exact rules.
