Effective April 1, 2024, trust bank accounts (both revocable and irrevocable) will now be insured up to $1.25 million rather than the current $250,000.00. This is huge news to clients who have funds across multiple banks in order to make sure all accounts are FDIC insured. In light of the recent bank failures, namely Silicon Valley Band and First Republic Bank, many of our clients open multiple accounts across multiple banks to ensure that their funds are safe and insured in case of bank failure or liquidity issues. Now, rather than opening 5 accounts at 5 different banks to get $1.25 million in FDIC insurance, clients can now hold all the funds in one bank institution, greatly simplifying their lives.
Again, this benefit will only apply to trust accounts, and we encourage our clients to set up trusts if they need such added coverage.’
See the FDIC’s new Rules and Regulations here.