How does the death of a beneficiary of a living trust (formal revocable trust) affect the insurance coverage?
Like informal revocable trusts, the six-month grace period does not apply to the death of a beneficiary named in a formal revocable trust account. Unlike informal revocable trusts, however, the terms of the formal revocable trust may provide for a successor beneficiary or some other redistribution of the trust deposits. Depending on these terms, the insurance coverage may or may not change. For additional assistance, contact the FDIC using one of the resources listed under “For More Information from the FDIC.
