# of Owners x # of Beneficiaries x $250,000 = Amount Insured (not to exceed $1,250,000 per owner for all trust accounts at the same bank)
Formal Revocable Trust Accounts
While Both Owners are Alive
Example 1: A formal revocable trust with Husband and Wife as trust owners with Child 1, Child 2, and Child 3 as beneficiaries.
Coverage Calculation
Under the new trust rules, coverage would be determined as follows:
(2 owners: Husband and Wife) x (3 beneficiaries: Child 1, Child 2, and Child 3) x $250,000 = $1,500,000
How to enter using EDIE
User should enter the account into EDIE by choosing "Formal Revocable Trust" as the Ownership Type. Both Husband and Wife should be entered separately as owners, and both should be marked as "living". Beneficiaries Child 1, Child 2, and Child 3 should be added separately and all marked as "living".
Enter Account Nickname (e.g. CD) and the Account Balance. Click Add to Report then click Calculate Coverage
After One Spouse's Death (trust does not split)
Example 2: Husband dies; the Wife is the sole owner of the revocable trust with Child 1, Child 2, and Child 3 as beneficiaries.
Coverage Calculation
Under the new trust rules, coverage would be determined as follows:
(1 owner: Wife) x (3 beneficiaries: Child 1, Child 2, and Child 3) x $250,000 = $750,000
How to enter using EDIE
User should enter the account into EDIE by choosing "Formal Revocable Trust" as the Ownership Type. Only the surviving spouse, Wife, should be entered as the owner and marked as "living". Beneficiaries Child 1, Child 2, and Child 3 should be added to this trust account and marked as "living".
Enter Account Nickname (e.g. CD) and the Account Balance. Click Add to Report then click Calculate Coverage
After One Spouse's Death (Trust splits)
Example 3:
- Wife survivor's trust - a revocable trust owned by Wife with Child 1, Child 2, and Child 3 listed as beneficiaries.
- Husband's marital trust - an irrevocable trust with Husband as the owner and Child 1, Child 2, and Child 3 as beneficiaries. If the Wife has use of the funds during her lifetime (Life Estate interest), she would be considered a fourth beneficiary
Coverage Calculation
Coverage for the Wife's revocable trust would be determined as follows:
(1 Owner: Wife) x (3 Beneficiaries: Child 1, Child 2, and Child 3) x $250,000 = $750,000
Coverage for the Husband's irrevocable trust would be determined as follows:
(1 Owner: Husband) x (4 Beneficiaries: Child 1, Child 2, and Child 3 + Wife) x $250,000 = $1,000,000
How to enter using EDIE
User should enter the Wife's revocable trust account(s) into EDIE by choosing "Formal Revocable Trust" as the Ownership Type. Only the surviving spouse, Wife, should be entered as the owner and marked as "living". Beneficiaries Child 1, Child 2, and Child 3 should all added to this trust account and marked as "living".
Enter Account Nickname (e.g. CD) and the Account Balance. Click Add to Report then click Add New Account
The user also must separately enter the Husband's irrevocable trust account(s) into EDIE by choosing "Irrevocable Trust" as the Ownership Type. Only the deceased spouse, Husband, should be entered as the owner and marked as "not living". Beneficiaries Child 1, Child 2, and Child 3 + Wife should all be added to this trust account and marked as "living".
Enter Account Nickname (e.g. CD) and the Account Balance. Click Add to Report then click Calculate Coverage
After Both Spouses' Deaths (Trusts remain separate)
Example 4: Following the Husband's death, the Wife then passes away. The survivor's revocable trust that was created upon Husband's death now becomes irrevocable. Husband's trust remains irrevocable, but now only has three living beneficiaries (three children).
Coverage Calculation
Coverage for the two irrevocable trusts would be determined as follows:
(1 Owner: Wife) x (3 beneficiaries: Child 1, Child 2, and Child 3) x $250,000 = $750,000 insured.
Likewise, coverage for the Husband;s irrevocable trust would now be determined as follows:
(1 Owner: Husband) x (3 beneficiaries: Child 1, Child 2, and Child 3) x $250,000 = $750,000 insured.
How to enter using EDIE
The husband's irrevocable trust and wife's irrevocable trust must be entered separately into EDIE as irrevocable trusts.
User should enter the Husband's irrevocable trust accounts(s) into EDIE by choosing "Irrevocable Trust" as the Ownership Type. Husband, should be entered as the owner and marked as "not living". Beneficiaries Child 1, Child 2, and Child 3 should all be added to this trust account and marked as "living".
Enter Account Nickname (e.g. CD) and the Account Balance. Click Add to Report then click Add New Account
The user also separately enters the Wife's irrevocable trust deposit(s) into EDIE by choosing "Irrevocable Trust" as the Ownership Type. The Wife, should be entered as the owner and marked as "not living". Beneficiaries Child 1, Child 2, and Child 3 should all be added to this trust account and marked as "living".
Enter Account Nickname (e.g. CD) and the Account Balance. Click Add to Report then click Calculate Coverage
After Both Spouse's Deaths (Trusts merge)
Example 5: Husband and Wife have both passed away and the two trusts are combined.
Coverage Calculation
The last surviving spouse (Wife) is considered the sole owner of the merged irrevocable trust.
Coverage for the merged irrevocable trust would be determined as follows:
(1 owner: Wife) x (3 beneficiaries: Child 1, Child 2, and Child 3) x $250,000 = $750,000
How to enter using EDIE
User should enter the account as an Irrevocable Trust with the last living owner (e.g. Wife) as the sole owner of the account(s) and marked as "not living". Beneficiaries Child 1, Child 2, and Child 3 should all be added to this trust account and marked as "living".
Irrevocable Trust Accounts (created while both owners were living)
While Both Owners are Alive
Example 1: An Irrevocable trust with Husband and Wife as trust owners with Child 1, Child 2, and Child 3 as beneficiaries.
Coverage Calculation
Under the new trust rules, coverage would be determined as follows:
(2 owners: Husband and Wife) x (3 beneficiaries: Child 1, Child 2, and Child 3) x $250,000 = $1,500,000
How to enter using EDIE
User should enter the account into EDIE by choosing "Irrevocable Trust" as the Ownership Type. Both Husband and Wife should be entered separately as owners, and both should be marked as "living". Beneficiaries Child 1, Child 2, and Child 3 should be added separately and all marked as "living".
Enter Account Nickname (e.g. CD) and the Account Balance. Click Add to Report then click Calculate Coverage
After One Spouse's Death
Example 2: Husband dies; the Husband and Wife continue to be co-owners of the irrevocable trust with Child 1, Child 2, and Child 3 as beneficiaries.
Coverage Calculation
Coverage for the Husband and Wife’s trust would be determined as follows:
(2 owners: Husband and Wife) x (3 beneficiaries: Child 1, Child 2, and Child 3) x $250,000 = $1,500,000
How to enter using EDIE
User should enter the account into EDIE by choosing "Irrevocable Trust" as the Ownership Type. Husband and Wife, should be entered as the co-owners. Wife should be entered and marked as "living". Husband should be entered separately and marked as "not living". Beneficiaries Child 1, Child 2, and Child 3 should be added to this trust account and marked as "living".
Enter Account Nickname (e.g. CD) and the Account Balance. Click Add to Report then click Calculate Coverage
After Both Spouse's Deaths
Example 3: Husband and Wife have both passed away.
Coverage Calculation
Husband and Wife are still considered co-owners of the irrevocable trust.
Coverage for the irrevocable trust would be determined as follows:
(2 Owners: Husband and Wife) x (3 beneficiaries: Child 1, Child 2, and Child 3) x $250,000 = $1,500,000
How to enter using EDIE
User should enter the account as an Irrevocable Trust with Husband and Wife as co-owners and both marked as "not living". Beneficiaries Child 1, Child 2, and Child 3 should all be added to this trust account and marked as "living".
Enter Account Nickname (e.g. CD) and the Account Balance. Click Add to Report then click Calculate Coverage