Leading Estate Planning Attorney Ana M. Veliz, founder of the Law Offices of Ana M. Veliz, P.A. in Coral Gables, FL discusses how to create a trust in a way to increase FDIC insurance protections. For more information please visit https://velizlaw.com
Coral Gables, Florida, United States - April 24, 2023 —
Creating a Revocable Trust could help unlock $250,000 bounties for named beneficiaries and weather future earthquakes in the banking system, Florida Estate Planning Attorney Ana M. Veliz disclosed this week.
For more information please visit https://velizlaw.com
With the recent collapse of Silicon Valley Bank and Signature Bank prompting concerns about the wider banking sector in general, depositors could be doing themselves a major favor by turning to having a revocable trust.
Veliz said bank deposits are typically insured for $250,000 by the Federal Deposit Insurance Corporation (FDIC) per depositor, per bank. “But those with a Revocable Trust account could have way more than that depending on the number of beneficiaries in the trust.”
“A common question from my clients in recent weeks following Silicon Valley Bank’s problems has been whether an account titled in the name of a revocable trust has FDIC insurance? The answer is yes,” asserted the Founder of the Law Offices of Ana M. Veliz, P.A. in Coral Gables.
She added: “If the trust has five unique beneficiaries or less, the account will be insured $250,000 per beneficiary for a total of up to $1,250,000.”
This is a much better result than a client with an account in their name, where the account (if not a transfer on death account which is also considered a trust account) is only insured for $250,000.
She added that a unique beneficiary is a person or a charity that will inherit upon the Grantor’s death. Contingent beneficiaries are not insured.
Veliz advised that if a trust has more than five unique beneficiaries, it is possible to get more than $1,250,000 of FDIC insurance for that trust account through a much more complicated formula.
She has also received questions over how many accounts a trust can have and still be FDIC insured. “A Trust can have multiple accounts at various financial institutions as the FDIC insurance is applied per account, per institution,” she said.
When the owner of a single account designates one or more beneficiaries, the account may be insured as a Revocable Trust Account, pending specific requirements.
Veliz advised anyone considering setting up an estate plan to seek advice from an experienced Estate Planning Attorney, as they would also be able to advise on options for naming children as beneficiaries, and intentionally creating the trust in a way to increase FDIC insurance protections.
Source: http://RecommendedExperts.biz
Contact Info:
Name: Ana M. Veliz
Email: Send Email
Organization: Law Offices of Ana M. Veliz, P.A.
Address: 2600 S. Douglas Road Suite 710 Coral Gables, Fl 33134
Phone: (305) 703-5198
Website: https://velizlaw.com
Release ID: 89095265
If you detect any issues, problems, or errors in this press release content, kindly contact error@releasecontact.com to notify us. We will respond and rectify the situation in the next 8 hours.
