I have a revocable trust. My bank opened accounts for me for the FDIC increase in insurance. They titled my account in the name of my revocable trust or ABC Inc (the name of my business). Another title used was Revocable Trust POD Cancer Foundation. Is this right since the FDIC changed coverage amounts or should it have been done another way?
If you have an actual revocable trust, the accounts can simply be titled in the name of the trust. You have to decide how the trust has to be worded in order to accomplish your goals. If the beneficiaries of the trust qualify as beneficiaries under the FDIC rules, insurance coverage will be based on the number of qualified beneficiaries times the number of grantors/trustees of the trust. If the trust has two eligible beneficiaries and you are the only grantor, the current insurance cap would be $250,000 x 2, or $500,000 ($200,000 after 12/31/2009). The name of the trust has to be in the account title, but the names of the beneficiaries do not.
The account should not be titled in the name of the trust with a POD beneficiary, nor will an account titled jointly in the name of the trust and a corporation qualify for extra FDIC coverage. You should arrange to have the accounts correctly established to achieve your goals.
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If you have an actual revocable trust, the accounts can simply be titled in the name of the trust. You have to decide how the trust has to be worded in order to accomplish your goals. If the 