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Old 13-05-2019, 08:56 PM   #1228
Supremacy Member
Join Date: Jan 2012
Posts: 7,987
Hi BBCWatcher,

I discovered Interactive Brokers just launched a new programme that is a great relief to investors with substantial funds in the brokerage account. Cash in IB account will be swept into U.S banks. Up to $2.5m of cash is insured by FDIC. With Uncle Sam's protection, no fear anymore. I'm not sure if this wonderful programme includes non-USD currencies.

Is this too good to be true? Do you see any downside to this programme?

The Insured Bank Deposit Sweep Program allows eligible IB clients to obtain up to $2,500,000 ($5,000,000 for joint accounts) of FDIC insurance in addition to existing $250,000 SIPC coverage for total coverage of $2,750,000 ($5,250,000 for joint accounts).

One more question which is the far more important question. It seems that money in U.S bank accounts is not subjected to estate tax. Does it mean if I die of heart attack now, my USD cash deposited in the banks allocated by IBKR is safe for my children to inherit?

Thanks for your time.

Certain assets that are exempt from U.S. estate tax include securities that generate portfolio interest, bank accounts not used in connection with a trade or business in the U.S., and insurance proceeds.

Last edited by klarklar; 13-05-2019 at 09:00 PM..
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