Retirement Accounts and Trusts Be sure to review the FDIC's rules on retirement accounts and accounts set up as irrevocable or revocable trusts. If you have named a spouse or relative to act as executor of your estate, consider reviewing the deposit-insurance rules with them. And remind him or her to seek expert advice when the time comes. After your death, the FDIC provides a six-month window in which it will cover deposits within the maximum limits in your accounts. Once your executor or estate administrator takes control of the account, the grace period ends.
Complicated rules apply to funds deposited by executors or administrators on behalf of an estate.
If not handled properly, such deposits will be counted as part of the funds still held in your name at the bank and may cause FDIC limits to be exceeded, putting the estate at financial risk. You can also find details on deposit-insurance rules by visiting the FDIC's Web site. Answered in the December issue for more examples of how FDIC insurance works. The Kiplinger Washington Editors, Inc.