The FDIC has changed the rules on how it insures your family’s trust. 

The agency is doing its best to simplify some of its rules to make them easier to understand. Before, revocable trusts and irrevocable trusts followed two different rules. Now, beginning April 1, 2024, the money held in the bank by your revocable or irrevocable trust will be covered under one rule:

• The account is insured by the FDIC for up to $250,000 per beneficiary, for up to five beneficiaries
• The limit: Up to $1,250,000 total per trust owner

If two people—a married couple, for example—own revocable and irrevocable accounts at the same bank and have listed the same beneficiaries, the FDIC doubles the coverage limit. That means that each beneficiary will be covered for up to $500,000 each, for up to five beneficiaries, for a total of $2.5 million. 

If you’re not sure how this will affect you or your trust, contact us. If you’re a member of JM LAW CARES, changes like this are already part of your annual CARES review. 

Interested in learning more about membership in JM LAW CARES, our estate and legacy planning maintenance program? If you’re a JM LAW client, you can enroll today. Find out more about JM LAW CARES on our website or contact us to enroll.

This post was created by Avatus Stone, COO & estate planning strategist at JM LAW, PLLC.