Are the funds in a living trust federally insured?
Living trust accounts are insured as a form of an individual account. The beneficiary doesn’t have to be a family member but must be a natural person or charitable organization. The funds in such accounts are insured for the owner up to a total of the $250,000 SMSIA for each such beneficiary, separately from any other individual accounts of the owner. If the beneficiary is not one of those listed, the funds in the account that are attributable to that beneficiary are treated as an individually owned account of the owner, aggregated with any other individual accounts of the owner, and insured to the $250,000 SMSIA. In the case of a revocable trust account, the person who holds the power of revocation is deemed to be the owner of the funds in the account.
