6.3.7 Irrevocable Trust Accounts (IRR)
Irrevocable trust accounts are deposit accounts held by an irrevocable trust established by a statute, written trust agreement or a valid court order. An irrevocable trust may also be created through the death of the grantor of a Revocable Living Trust.
The following types of interests are present in an Irrevocable Trust:
Retained Interest
Retained Interest represents those assets that can be returned by the trustee to the grantor in accordance with the terms of the trust agreement. For deposit insurance purposes, the funds under Retained interest are treated under SGL ORC.
Non Contingent Interest
Non Contingent Trust Interest is defined in the FDIC’s regulations as an interest capable of determination without evaluation of contingencies. The only exception for contingencies in this case is present worth/life expectancy.
Contingent Interest
Contingent Interest is a beneficiary interest that is subject to any types of contingency other than present worth/life expectancy.
The application identifies these interests under Allocation Type Code dimension.