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Details Regarding Revocable Living Trust
I have a revocable living trust. How much can I put in a bank that is FDIC insured? My trust reads that at my death the money will be divided into a "marital" trust and a "family" trust. What is the maximum that is insured?
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 The FDIC has specific rules concerning the FDIC insurance coverage limits on revocable trusts. In general, if the account is identified as being owned by a revocable trust or living trust, and the beneficiaries of the trust are identified in the trust documents and are qualified beneficiaries under FDIC regulations (must be members of the grantor's immediate family), and the beneficiaries will obtain access to their interest in the trust on the grantor's death, the account is insured up to $100,000 for each beneficiary.
As you have described your trust, the beneficiaries don't appear to be qualified beneficiaries for this special FDIC treatment (because the beneficiaries are trusts, not individuals). If that is correct, the funds in the account of the trust would be considered your own individually-owned funds, combined with all your other individually owned accounts in the same banks, and insured to a limit of $100,000.
The FDIC rule is complex. The FDIC summary of the rule can be found HERE for further information. For further clarification, you can use one of the three FDIC contact alternatives listed at the bottom of that page.
Note: Effective September 26, 2008, the FDIC amended its rules on insurance coverage of revocable trust accounts. The former restriction of coverage to "qualified beneficiaries" (immediate family members) was lifted. Coverage continues to be capped at $100,000 per beneficiary per depositor.For depositors with more than $500,000 in revocable trust accounts and more than five beneficiaries, the coverage is the greater of either $500,000 or the sum of all the named beneficiaries' proportional interests in the trusts, limited to $100,000 per different beneficiary.
Published on BankingQuestions.com 8/10/07; Updated 9/26/08
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