TENTH, given the state of the economy, it is important that banks maintain the confidence of their depositors. The FDIC continues its role in helping to strengthen public confidence in the nation's banking system by simpling rules applicable to revocable trust accounts. Two types of revocable trust accounts are insured under by the FDIC: informal trust accounts and formal trust accounts. Informal trust accounts consist of a signature card on which the owner designates the names of beneficiaries to whom the funds in the account will pass upon the owner's death. These are the most common type of revocable trust accounts and generally are referred to as "payable-on-death" (POD) accounts. The other type of revocable trust accounts are accounts established in connection with formal revocable trust agreements. Formal revocable trust agreements are created for estate planning purposes and are referred to as living or family trusts.
All revocable trust accounts (both POD accounts and living trust accounts) are insured up to $250,000 for the interest of each qualifying beneficiary. Generally, this would be the owner's spouse, children, grandchildren, parents, and siblings; but may also, include other individuals and charities.
What is your level of confidence in our banking system? What estate planning initiatives have your considered? Are you interested in exploring your options? Share your questions and concerns with us here.
All revocable trust accounts (both POD accounts and living trust accounts) are insured up to $250,000 for the interest of each qualifying beneficiary. Generally, this would be the owner's spouse, children, grandchildren, parents, and siblings; but may also, include other individuals and charities.
What is your level of confidence in our banking system? What estate planning initiatives have your considered? Are you interested in exploring your options? Share your questions and concerns with us here.
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