FDIC Law, Regulations, Related Acts
4000 - Advisory Opinions
Stepchildren are Recognized as Children for the Purpose of Deposit Insurance Coverage on Testamentary Trusts
April 23, 1986
Roger A. Hood, Assistant General Counsel
By letter dated March 31, 1986, you requested an interpretation of the FDIC's deposit insurance coverage regulation at 12 C.F.R. § 330.3 regarding testamentary trusts. At issue is the initial denial of a claim for $100,000 of insurance coverage on a certificate of deposit held by your client in trust for a stepson in a revocable trust account.
This will confirm the Legal Division's present position that a stepchild is recognized as a child for purposes of the testamentary trust provision. Nevertheless, section 330.3 is in the process of being revised to exclude stepchildren from the relationships designed in the regulation.
Our claims agent, Mr. Porterfield, is arranging to proceed with payment of the claim. If you have any questions regarding the payment procedure, you may direct them to Mr. Porterfield.