Bank failures are scary. I remember the last batch of bank failures and one of my clients calling because she could not access any of her money. Fortunately, the FDIC insurance protected her and the other people who used the same bank, and everyone was able to get their money. Recently, Silicon Valley Bank and First Federal Bank are also in trouble and closing. The FDIC again is covering the insured funds.
Are you covered by the FDIC? Deposits up to $250,000 are covered by the FDIC and your Credit Union has similar coverage through a different agency. If you have a Living Trust even more is covered. The FDIC provides up to $750,000 coverage for a Living Trust.
Typically, when I tell you that you need a Living Trust, my reasons are that you will avoid an expensive probate and make sure that if you become incapacitated someone can manage your money. Now there is another reason for you to have a Living Trust, more of your money will be insured in the event of a bank failure.
If you don’t have a living Trust it is time to give me a call and put together a plan to protect your money.