The interest of a beneficiary in a valid irrevocable trust, is insured up to $125,000 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 $125,000.
Frequently Asked Questions
- What does a deposit transfer involve?
- How does a depositor establish an insurance claim?
- In the event of a deposit transfer, how will a depositor know when and where he can withdraw his funds?
- If two or more persons, for example a husband and wife, have, in addition to the individually owned accounts of each, a valid joint account in the same insured institution, is each account separately insured?
Did You Know?
- Misconception: Depositors of a failed member institution would receive payment immediately upon closure of the failed member. - Fact: The legislation governing the operations of the Deposit Insurance system provides for payout to commence within 3 months of the closure of a member institution.