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Fiduciary Banking

The deposit account can be
established for the benefit of a single owner or a commingled account may be established for the benefit of multiple owners. The individual or entity opening the account does not have an ownership interest in the deposit.

Fiduciary relationships include, but are not limited to, arrangements involving:

• a trustee
• an agent
• a nominee
• a custodian
• a guardian

 Types of Fiduciary Accounts

Fiduciary accounts include but are not limited to the following:
• Uniform Transfers to Minors Act (“UTMA”) accounts or Uniform Gifts to Minors Act (“UGMA”) accounts
• Accounts with a power of attorney
• Decedent estate accounts
• Real estate and other escrow accounts
• Brokered deposits

Requirements for Fiduciary Accounts

Deposits held by a fiduciary on behalf of one or more principals are insured on a passthrough basis as the deposits of the principal (the actual owner) to the same extent as if
the deposits were deposited directly by the principal, provided all of the following three
requirements are met:

1. Funds must be in fact owned by the principal and not by the third party who set
up the account (i.e., the fiduciary or custodian who is placing the funds). To
confirm the actual ownership of the deposit funds, the FDIC may review:
a. The agreement between the third party establishing the account and the

b. The applicable state law

2. The IDI’s account records must indicate the agency nature of the account (e.g.,
XYZ Company as Custodian, XYZ For the benefit of (FBO), Jane Doe UTMA
John Smith, Jr.)

3. The records of the IDI, the fiduciary or a third party must indicate both the
identities of the principals as well as the ownership interest in the deposit.