Personal Finance & Money Stack Exchange is a question and answer site for people who want to be financially literate. Join them; it only takes a minute:

Sign up
Here's how it works:
  1. Anybody can ask a question
  2. Anybody can answer
  3. The best answers are voted up and rise to the top

This page shows FDIC insurance on trust accounts is subject to the number of beneficiaries. Yet a bank will open a trust account given only the number of trustees, not the number of beneficiaries. An account with two trustees and one beneficiary might have $5m in it, a good amount of which the FDIC won't cover. So how does the FDIC actually know the correct grand total amount in all banks it is currently liable for? (I'm guessing they don't really know.)

share|improve this question
up vote 3 down vote accepted

The FDIC periodically checks to make sure the bank is accurately accounting for all the deposits in the bank through a compliance Reporting Review

verifies whether the insured institution accurately calculates and reports data upon which the FDIC assesses deposit insurance..... issues a report discussing the institution’s compliance with assessment reporting requirements, the effectiveness of the institution’s documentation, and the institution’s responsiveness throughout the review process.

share|improve this answer
So you're saying the FDIC doesn't actually know how much to insure trust accounts for, since they get their numbers from the bank, and the bank doesn't know how many beneficiaries the trust has? – Witness Protection ID 44583292 Dec 11 '12 at 0:06
The bank will need to know the beneficiaries so they know how the funds will be distributed after the death of the owner. The designation on the account overrules the will. Here is a document from the FDIC regarding the calculation of coverage there are many examples, and the issue is very complex: – mhoran_psprep Dec 11 '12 at 1:07

Your Answer


By posting your answer, you agree to the privacy policy and terms of service.

Not the answer you're looking for? Browse other questions tagged or ask your own question.