Hoping to prevent a repeat of some of the chaos that followed the federal takeover of failed IndyMac Bank, regulators on Friday eased some rules on FDIC insurance for one type of bank account.
The account, called a revocable trust, is a deposit that can be owned by one or more people and is willed to a predetermined beneficiary or beneficiaries upon the death of the owner.
Under previous rules, the owner of a revocable trust account was insured up to $100,000 for each "qualifying beneficiary." Spouses, children, grandchildren, parents and siblings qualified, but friends and such relatives as in-laws, cousins, nieces and nephews did not.
But on Friday, the Federal Deposit Insurance Corp. said it had eliminated the concept of qualifying beneficiaries so that coverage was based on the naming of basically any beneficiary.