ICBA Endorses Maximum Deposit Insurance Coverage for Living Trusts
In a comment letter filed last week with the FDIC regarding the deposit insurance coverage of living trust accounts, the ICBA urged coverage of $100,000 per beneficiary regardless of any "defeating contingencies" in the trust rather than coverage of $100,000 per owner.
The FDIC asked bankers to comment on those two alternatives for simplifying the existing deposit insurance rules for living trust accounts. ICBA strongly endorsed the first alternative because it would be the easiest to understand and would not decrease the level of deposit insurance coverage for living trust accounts. However, the ICBA opposed the proposal by the FDIC to impose additional recordkeeping or certification requirements for living trust accounts.