At the seminar the FDIC held a short question and answer session. Questions were also received via a special mailbox at DepositInsuranceCoverage@fdic.gov.. The FDIC also announced that all questions and answers would be available on the FDIC web site. Below are the questions raised during the June 29, 2005, seminar:

1. What is a Public Unit Account?
   Public unit accounts are deposit accounts of:
   • The United States
   • Any state, county, municipality (or a political subdivision of any state, county, or municipality), the District of Columbia, Puerto Rico and other government possessions and territories
   • An Indian tribe

   Insurance coverage of a public unit account differs from a corporation, partnership, or unincorporated association account in that the coverage extends to the official custodian of the funds belonging to the public unit rather than the public unit itself.

   Each official custodian may receive up to $200,000 in insurance coverage - $100,000 in time and savings deposits and $100,000 in demand deposits - provided the funds are held in an insured bank located in the same state as the public unit.

   Public unit funds maintained in any out-of-state bank- whether time, savings or demand deposits - are limited to a maximum of $100,000 in coverage per official custodian. More guidance on public units can be obtained from this Fact Sheet.

2. What are the accounts that CANNOT be processed by EDIE-Banker Version?
   Accounts that cannot be processed by EDIE-Banker Version include:
   • Complex Revocable Trust Accounts
   • Irrevocable Trust Accounts
   • Public Unit Accounts
   • Employee Benefit Plan Accounts and
   • Fiduciary Accounts


3. How does the FDIC calculate coverage for a revocable living trust account?
   The owner of a living trust account may be insured up to $100,000 per beneficiary if all requirements are met based on answers obtained from the following questions:
   • First , who are the owners of the trust? Deposit insurance is provided to the owner. Owners are commonly referenced in the formal revocable trust document as trustors/grantors or settlers (trustees, co-trustees and successor trustees do not have an influence on deposit insurance).
   • Second, who are identified as the beneficiaries of the trust? The beneficiaries must become entitled to their interest in the trust when the last owner dies.
   • Third, do the beneficiaries meet the kinship requirement - that is, are they qualifying? To qualify for revocable trust coverage, a trust beneficiary must be the owner's spouse, child, grandchild, parent or sibling. Stepparents and stepchildren, adopted children and similar relationships also qualify. However, ex-spouses, in-laws, cousins, nieces and nephews, friends, charitable organizations do not qualify. Also, if the trust itself is named as the beneficiary, the qualifying beneficiary requirement is not met.
   • Fourth, what dollar amount or percentage interest has the owner allocated to each beneficiary? The amount of coverage is based on the actual interests of each qualifying beneficiary. Unless the trust states otherwise, the FDIC will assume that the beneficiaries have an equal interest in the living trust account. If the interests or the dollar amount that each beneficiary receives is unequal, it will affect the amount of deposit insurance coverage.
   • Fifth, are all the beneficiaries or owners alive? This is important because deposit insurance can change if there is a death of an owner or a beneficiary.
   • Sixth question is to verify that the account title at the bank indicates that the account is held by a trust. This requirement can easily be met by using the words "living trust," "family trust," or similar terms in the account title.


4. What happens to deposit insurance coverage when a beneficiary dies?
   • The insurance coverage is immediately reduced upon the death a beneficiary.


5. What happens to deposit insurance coverage when an owner/ grantor dies?
   • Upon the death of an owner, the FDIC provides a grace period of up to six months, where the account would be insured as if the owner had not died, to allow time to restructure the account, if necessary.


6. Are IRA accounts insured for up to $130,000?
   • All of your self-directed retirement accounts at the same insured bank are added together and the total is insured up to $100,000.
   • The reference to $130,000 is based on legislation in Congress to increase the $100,000 deposit insurance coverage.


7. Are banks required to provide their customers with FDIC insurance information?
   • The FDIC does not require banks to provide its customers with the FDIC brochures, but it is highly recommended that each bank have the information available in the lobby and to hand out to new depositors.
   • The FDIC has 2 new brochures that should be provided to bank customers upon request:
     • Insuring your Deposits
     • Your Insured Deposits.


8. How do I contact the FDIC?
   • Call: Toll-free at 1-877-275-3342. Here you can talk directly to an FDIC representative from 8:00 am until 8:00 pm (Eastern Time) Monday through Friday. For those who are hearing impaired, we have a special number -- 1-800-925-4618.
   • Email: Go to www2.fdic.gov/starsmail
     • At this web page, you must first indicate whether you are a consumer or banker.
     • Next fill out the requester information.
     • Please include your phone number so we can follow-up if we need to obtain clarification on your question.
     • Then select "deposit insurance inquiry" and describe your inquiry in the dialog box.
     • Our goal is to respond to internet requests within five to seven days.
   • Mail:
     FDIC
     Division of Supervision and Consumer Protection
     Attn: Deposit Insurance Outreach
     550 17th Street, NW
     Washington, DC 20429
     • Due to the extra security precautions that all federal agencies have established for incoming mail, it may take two to three weeks before we receive the letter. And, if you inquiry involves complex issues, it may take another week or two for us to respond.

     While we welcome your e-mail questions and letters, we have found that the best way to respond to complex questions is on an individual basis, through a one-on-one phone call. This will ensure that we have enough information to give you a clear and comprehensive response.