FDIC insurance coverage set to change Jan. 1 for IOLTA accounts

Unless Congress takes unanticipated action, as of Jan. 1, 2013, FDIC insurance available to IOLTA accounts will be $250,000 per owner of the funds (client), per financial institution, assuming that the account is properly designated as a trust account and proper accounting of each client’s funds is maintained. Non-interest-bearing trust accounts will have this same level of coverage.

IOLTA and non-interest-bearing accounts currently have unlimited FDIC insurance coverage pursuant to Section 343 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which has a sunset date of Dec. 31, 2012.

For more information, please visit http://www.abanow.org/2012/12/fdic-insurance-coverage-to-change-for-iolta-and-non-interest-bearing-accounts/.

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