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Federal Deposit
Insurance Corporation

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

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FDIC Federal Register Citations

August 18, 2003

Federal Deposit Insurance Corporation
500 West Monroe Street, Suite 3300
Chicago, IL 60661-3697

RE: Comments sought about changes to deposit insurance coverage for LIVING TRUST accounts

To Whom This May Concern:

We at First Federal Savings and Loan strongly recommend that you select Alternative Plan Two for living trust account insurance. We feel it would make it easier for the customer to understand and for the banking institution to maintain.

Alternative Plan One would require us to obtain the complete trust agreement. Many customers feel most of this is none of our business and rightly so. It would also be a nightmare for the financial institution to figure out the specific dollar amounts allocated to specific individuals as some agreements have complicated conditions that need to be met as well as assets other than cash to take into consideration.

We like Alternative Plan Two because it would simply require us to know if there was one or two grantors of the trust, for example, and therein you would know that the trust was covered up to either $100,000 or $200,000 respectively. Also, the accountholder could have additional separate coverage in payable on death accounts per each beneficiary which would be easy to ascertain from the institutions signature card.

We agree that any one institution may not be able to meet the total insurance coverage for all accountholders. Maybe you should also think about increasing the insurance coverage per each category as well.



Linda Werner
Savings Officer
First Federal Savings and Loan Association
Edwardsville, IL 62025


Last Updated 09/23/2003

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