Skip Header

Federal Deposit
Insurance Corporation

Each depositor insured to at least $250,000 per insured bank

Home > Regulation & Examinations > Laws & Regulations > FDIC Federal Register Citations

FDIC Federal Register Citations

August 29, 2003

Regulations Comments
Federal Deposit Insurance Corporation
550 17th St. NW
Washington, DC 20429

Subject: Regulations on Insuring Living Trust Accounts

Dear Sir or Madam:

Principal Bank appreciates the opportunity to comment on the proposed rule to clarify the regulations on insuring living trust accounts.

Introduction. Principal Bank is a FDIC insured savings bank with a home office in Des Moines, Iowa, and is a member of Principal Financial Group. Principal Bank's focus is on electronic banking and it does not utilize a traditional "brick and mortar" branch strategy. Our distribution channels include the Internet, a call center and mail. Principal Bank was chartered in February 1998 under a federal charter and is regulated by the Office of Thrift Supervision (OTS).

Principal Financial Group (The Principal®) is a leading global financial institution offering businesses, individuals and institutional clients a wide range of financial products and services including retirement and investment services, life and health insurance and mortgage banking. Headquartered in Des Moines, Iowa, The Principal® serves more than 13 million customers worldwide from offices in Asia, Europe, Latin America and the United States.

Background. This letter provides Principal Bank's comments on proposed changes to living trust accounts. As the living trust is an increasingly popular probate instrument, there is a high demand to simplify the regulations so as to achieve specific estate and tax planning goals. Our Bank recognizes the need for clarification for insuring such account.

Principal Position. We feel the most suitable clarification would be Proposed Rule—Alternative One. With the continuing increase of inter-generational insuring, it seems appropriate we offer our customers the most FDIC insurance coverage available. In addition, because the coverage would no longer depend on defeating contingencies in the trust, depositors would have a clear understanding of their account coverage. Alternative One provides the amount of coverage and the clarity and understanding of living trust accounts that our customers deserve.

Your consideration of these comments is greatly appreciated. If you have any questions, or would like any additional information please do not hesitate to call me.

Joel S. Hjelmaas
VP and Chief Compliance Officer
Principal Bank,  Des Moines, IA


Last Updated 09/02/2003

Skip Footer back to content