Related Consumer Finance Programs - The following sub-directories of companies offer a wide variety of financial programs to assist you with the management of your finances. Consolidate debt with a consolidation loan or use a debt counseling service or mortgage refinance for help with the consolidation of your charge card debt and other monthly payments.
- Debt Management Programs - Too many credit cards and other bills to make monthly payments on? Start here by reviewing and comparing different debt management options for getting help with your credit card bills and other monthly obligations.
- Debt Consolidation Help - If you have a large amount of credit card and other debts, now may be a good time to consolidate your debt and lower your payments.
- Debt Settlement - Too much debt? List of companies providing this alternative to bankruptcy that provides for debt negotiation and arbitration services for those that need to eliminate debt.
FDIC Insurance: Do You Know As Much As You Think You Know?
Misconceptions: A Top 10 List
Misconception Number 9: Revocable trust accounts are insured up to $100,000 for each owner and each beneficiary.
As noted, each depositor's revocable trust accounts at a bank are insured up to $100,000 per qualifying beneficiary. But some people incorrectly assume that the coverage is based on the total number of depositors and beneficiaries.
Let's say an owner of a revocable trust names his or her child as the only beneficiary. Some people assume the account is covered up to $200,000 ($100,000 for the depositor and $100,000 for the beneficiary). But actually, the FDIC coverage is up to $100,000 for the one qualifying beneficiary. According to Williams, "This often comes as a surprise to depositors who will respond, 'What about me? Don't I get any coverage?' I tell them that the owners are covered, but coverage is based on the number of qualified beneficiaries."
But also consider this example. A family has a living trust account with two owners — a husband and wife — and they name their three children as the beneficiaries. Some people would guess that because there are five names on the account, FDIC coverage is for $500,000. In fact, the FDIC would cover this account up to $600,000 — $300,000 for the husband's funds payable to the three beneficiaries and $300,000 for the wife's funds payable to the same three beneficiaries (assuming that the shares of the three beneficiaries are equal).
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Last updated on 5/09/2006