SVB Collapse: Revocable Living Trusts may increase federal protection of your bank accounts

In light of the recent events surrounding the collapse of Silicon Valley Bank, many people are looking for a way to ensure that their bank accounts are properly insured. Typically, a bank account held in a deposit account under an individual name at a federally insured bank, will be insured up to $250,000. If the account is jointly owned, that figure increases to $500,000.

However, where an account is properly titled to a formal revocable living trust, the account will be insured per the amount of “primary” beneficiaries the trust names, not to include the trust’s grantors. For example, if you are the grantor of a revocable living trust that names your four children as beneficiaries after your death, your account will be insured to $1,000,000. If you are married and title the account to a family trust having two grantors, that number will double to $2,000,000, another reason that revocable trusts in estate planning are so important.

If you are looking to promptly insure your funds while you carry out your estate planning, another method to increase your insurance protection is by spreading your accounts among various federally insured banks, or naming multiple payable on death beneficiaries.

It is important for all of us to take prompt action in insuring their deposit account. Please contact one of Chauvel & Glatt’s estate planning attorneys to consider the best method for you.

This material in this article, provided by Chauvel & Glatt, is designed to provide informative and current information as of the date of the post. It should not be considered, nor is it intended to constitute legal advice.  For information on your particular circumstances, please contact  Chauvel & Glatt at 650-881-2476 for legal assistance near you. (photo credit:

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