Bank customers who have trust accounts may see their FDIC insurance coverage limits lowered due to new changes that went into effect April 1.While the FDIC's move is intended to make insurance coverage rules for trust accounts simpler, it may push some depositors over FDIC limits, according to Ken Tumin, founder ofHow to avoid 'ghost preparers' and other tax scams as the April 15 filing deadline approachesPeople hate budgeting.
Under the new rules, trust deposits are now limited to $1.25 million in FDIC coverage per trust owner per insured depository institution. That may cause coverage reductions for certain investments that were established before these changes. For example, investors with certificates of deposit that are over the coverage limit may be locked into their investment if they do not want to pay a penalty for an early withdrawal.