On Monday, September 1, 2014 9:00:02 AM UTC-7, Pico Rico wrote:
> A living trust document specifies 15 beneficiaries, with a first group of
> three beneficiaries getting a specific distribution of $xx each (relatively
> small in the grand scheme) and a second group of 12 beneficiaries being the
> primary beneficiaries receiving equal shares after expenses and the first
> group receives their distribution.
>
Per the FDIC, it looks like you run into the $1,250,000 limitation (subject to $250k/beneficiary as well - in case there are unequal shares).
See <
https://www.fdic.gov/edie/fdic_info.html>
They recommend calling the FDIC if it's still unclear and provide a number:
Note: Determining coverage for revocable trust accounts that have six or more
beneficiaries and provide different interests for the trust beneficiaries can be
complicated. Contact the FDIC at
1-877-275-3342 if you need assistance in
determining the insurance coverage of your revocable trust.
> Thus far, she has been going under what seems to have been the old rule (or
> a previous understanding) that the insurance was limited to 5 x $250,000, as
> there were more than 5 beneficiaries, but it seems there is a higher level
> of insurance actually available.
Looks, from that FDIC page, that the 5x rule still applies, though it's more of a
$1.25million rule with individual beneficiary shares capped at $250k each.
Bottom line, though - call the FDIC.
If you don't mind, I'm sure others here would love to hear what they tell you!
Thanks
--David