6.3.5 Trust Accounts
A Trust Account is a legal arrangement through which funds or assets are held by a third party for the benefit of another party, which may be an individual or a group. The creator of the trust is known as a grantor or settlor. The beneficial parties are called the beneficiaries and the third party is called the trustee.
FDIC provides insurance coverage to both Revocable and Irrevocable Trust Accounts under ORC REV and IRR, respectively. The terms of a Revocable Trust Account, as the name suggests, can be revoked or modified at any time. An Irrevocable Trust on the other hand once set in place, cannot be modified.
To receive coverage under REV and IRR ORC, certain requirements must be fulfilled. The following is common for both REV and IRR.