Florida Elder Law & Estate Planning Blog

FDIC Rules for Trust Accounts Change in 2024, Typical Depositor Unaffected

The Federal Deposit Insurance Corporation is changing its policy for trust accounts effective April 1, 2024.  If you are a typical depositor, you should experience no change in coverage and will not need to take any action, says the agency.

FDIC insurance coverage for trusts can be confusing, and inquiries about this subject generate more inquiries to the FDIC than all other types of deposits combined. The changes will simplify the terms of service and make them easier to understand.

Under the current rules, FDIC coverage is offered on a proportionate basis. Additionally, the FDIC rules distinguish between revocable trusts; irrevocable trusts; and irrevocable trusts with an insured depository institution serving as the trustee.  Under the new rules, all trusts will be combined into one category called “trust accounts” and will be subject to the same terms of coverage, which are:


  • Trust deposits are insured up to $250,000 per beneficiary.
  • The number of beneficiaries may not exceed 5, regardless of the way in which funds are allocated among beneficiaries.
  • The maximum insurance is $1,250,000 per owner, per insured  financial institution for trust deposits.
  • The above numbers are doubled if the trust is joint and there are two owners.

Note that these same rules apply to payable on death accounts, which the FDIC considers to be “informal” trusts.

Again, the new rules do not go into effect until 2024, and most people will be unaffected. To learn more about your coverage under the changes ahead, talk with your bank.

Read the full text of the new FDIC rules here.