The interest of a beneficiary in a valid irrevocable trust, is insured up to $200,000 separately from the individual accounts of the settlor, the trustee or other beneficiaries. However, all trust interests created by the same settlor (grantor) in the same institution for the same beneficiary will be added together and insured in the aggregate up to a maximum of $200,000.
Frequently Asked Questions
- What methods of payment may the DIC use in meeting its obligations to the depositors of a failed institution?
- Will shareholders of an institution receive any part of their investment before depositors’ claims are satisfied?
- Can a depositor leave his/her deposit with the transferee institution?
- What happens to those depositors whose accounts are subject to further examination?
Did You Know?
- Misconception: Mutual Funds are covered by Deposit Insurance. - Fact: Mutual funds, be they general or issued as a member’s proprietary funds, are NOT covered by deposit insurance.
