• Single Accounts
• Self-Directed Retirement Accounts
• Joint Accounts
• Revocable Trust Accounts (Formal and Informal)
• Irrevocable Trust Accounts
• Employee Benefit Plan Accounts
• Corporation, Partnership and Unincorporated Association Accounts
• Government Accounts

Introduction
The term "revocable trust account" refers to any deposit account that indicates an intention that the funds will pass to one or more named beneficiaries upon the death of the owner. A revocable trust account can be revoked (or terminated) at the discretion of the owner. In this section, the term "owner" means the grantor, settlor or trustor of the trust.

Explanation:
This POD account is insured up to $100,000 since there is one owner and one qualifying beneficiary who will receive the deposit when the owner dies.

Example #13:
Elizabeth and Robert Brown (husband and wife) have a POD account for $400,000 that names their niece and nephew as beneficiaries. Since the niece and nephew are not qualifying beneficiaries, $200,000 will be considered Robert's single account and $200,000 will be considered Elizabeth's single account for deposit insurance purposes. Assuming the couple had no other single accounts at the same bank, they will each be uninsured for $100,000 ($200,000 in total).

If a POD account has multiple owners, the FDIC will assume that each owner has an equal share of the account unless the bank's deposit account records indicate otherwise. Similarly, if a POD account names two or more beneficiaries, the FDIC will assume that each beneficiary has an equal interest in the account unless otherwise stated in the bank's deposit account records.

Mix of Qualifying and Non-Qualifying Beneficiaries
If a beneficiary is qualifying for one owner but not for the other owner, the qualifying beneficiaries' interests will be insured under the revocable trust account category and the non-qualifying beneficiaries' interests will be insured as the owner's single account, as described above.

Explanation:
Since Mr. Jones' mother and father are not qualifying beneficiaries for Mrs. Jones (they are her in-laws), Mrs. Jones' share of the account does not qualify for insurance in the revocable trust account category. Her share of the account is insured as her single account. In this example, Mrs. Jones does not have any other single accounts. If she had other single accounts at the bank (for example, a $5,000 checking account), those deposits would be added to her share of the POD account above and the amount over $100,000 would be uninsured.

Coverage when an owner has multiple revocable trust accounts
All revocable trust accounts of a particular owner at the same bank are added together for insurance purposes and the combined total is insured up to $100,000 per owner per qualifying beneficiary.

Explanation:When an account owner names the same qualifying beneficiary on more than one POD account at the same bank, the amounts placed in trust for that beneficiary are added together and the total is insured up to $100,000. Since Sharon was named as a beneficiary by Lisa Li on two accounts, the amounts attributable to Sharon for both accounts are added together and the total is insured up to $100,000 with $100,000 uninsured.

Death of a POD Account Qwner
If a POD account has more than one owner (for example, husband and wife) and one of the owners dies, the insurance coverage of the account changes after the expiration of the six-month grace period. The account coverage decreases by up to $100,000 for each qualifying beneficiary that was named by the deceased account owner.

Revocable Trust Accounts: Formal Trusts
(Living or Family Trust Accounts)

Definition Formal revocable trusts, also known as "living" or "family" trusts, are governed by a separate revocable trust document, usually drafted by an attorney.

• The account title at the bank must indicate the existence of a trust relationship. This rule can be met by using the terms "living trust," "family trust," "revocable trust" or similar language in the account title. As an example, an account titled Charles King Revocable Trust will meet this requirement.



• The requirement concerning qualifying beneficiaries is the same for formal trusts as it is for informal trusts. A "qualifying beneficiary" must be the owner's spouse, child, grandchild, parent, or sibling.



• The living trust agreement must provide that the funds in the account will belong to the beneficiaries upon the owner's death. This means that, when determining coverage, the FDIC will ignore any trust beneficiary who will have an interest in the trust assets only in the event that another beneficiary dies

Failure to Meet Requirements
As with informal trusts, if any of the requirements described above for formal trusts are not met, the entire amount in the account, or any portion of the account that does not qualify, will be insured as the owner's single account; the combined total that the account owner has in the single account category will be insured up to $100,000. If the formal trust has multiple owners, the funds will still be insured as each owner's single ownership funds.

When a formal trust has multiple owners, the FDIC will assume that each owner has an equal share of the account unless the trust document specifies otherwise. Similarly, when two or more beneficiaries are named on a formal trust, the FDIC will assume that each beneficiary has an equal interest in the account unless otherwise stated in the trust document.

Explanation: The Hall Family Trust is insured up to a maximum of $600,000. Each owner has a qualifying trust relationship to each of the three beneficiaries, resulting in insurance coverage up to $300,000 per owner, for a total of $600,000.

Coverage of Deposits — Two Grantors and Multiple Qualifying Beneficiaries with Unequal Interests in the Trust
When a formal trust provides for multiple beneficiaries to receive different percentages of funds upon the death of a grantor(s), then the calculation of deposit insurance coverage will include determining each beneficiary's interest.

Example #24:
Martin and Janet Walters co-own a living trust account with a balance of $400,000. The trust specifies that upon the death of one spouse, the funds pass to the surviving spouse, and upon that owner's death, the funds pass to their two children in shares of 75% and 25%.