How Your Revocable Living Trust Can Increase Your FDIC Insurance Coverage Limits

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With all of the news coverage of recent bank failures, I thought it would be good to talk about how a Revocable Living Trust can increase your FDIC Insurance Coverage Limits.  After the Financial Crises in 2008, the FDIC insurance limits were adjusted.  Deposits up to $250,000 at FDIC insured banking institutions are backed by the full faith and credit of the United States.  When your Revocable Living Trust owns your bank account, the living beneficiaries of your revocable living trust are also insured.  According to the FDIC regulations, when there are five or fewer beneficiaries, coverage is calculated by multiplying the number of owners by the number of beneficiaries, which is then multiplied by $250,000.  For example, if Adam is the Trustmaker and names his two children, Beth and Charles, as his beneficiaries, the maximum coverage on his deposits would be calculated as follows:

1 Trustmaker (Adam) X 2 Beneficiaries (Beth and Charles) X $250,000 = $500,000

If the number of beneficiaries is greater than 5 and the total balance of accounts exceeds $1,250,000, the calculations are more complicated, but the minimum coverage will be $1,250,000.

The FDIC website has an Electronic Deposit Insurance Estimator that you can use to calculate the coverage on your account.  It is available at

This is just one additional benefit of funding your bank accounts into your revocable living trust.  If you would like more information, or if you would like to start the process of estate planning, please don’t hesitate to call me at 801-874-4546 to schedule a free consultation.  I am an estate planning attorney in Spanish Fork, Utah.  While my office is in Spanish Fork, I provide estate planning services in Utah County and beyond.



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