The FDIC protects some money in bank accounts owned by a revocable living trust. The amount protected depends on the number of beneficiaries.

When a revocable trust owner designates five or fewer beneficiaries, the owner’s trust deposits are insured up to $250,000 for each unique beneficiary. This rule applies to the combined interests of all beneficiaries the owner has designated in all formal and informal revocable trust accounts at the same bank. When there are five or fewer beneficiaries, maximum deposit insurance coverage for each trust owner is determined by multiplying $250,000 times the number of unique beneficiaries, regardless of the dollar amount or percentage allotted to each unique beneficiary.

To determine your deposit insurance coverage or ask any other specific deposit insurance questions, you can call the FDIC at 1-877-ASK-FDIC (1-877-275-3342).

You can learn more at FDIC coverage for revocable living trusts. In addition, this FDIC coverage tool can be helpful.

This article was prepared by attorney Aaron Hall.