Are trust funds insured by the FDIC?
Trust funds are primarily invested in stocks, bonds or other income-producing assets. These trust investments are not bank deposits or obligations of, or guaranteed by, Greenfield Saivngs Bank. Trust funds are subject to investment risks, including possible loss of the principal amount invested. Securities and other assets administered by a bank as trustee are held separate from the bank’s own assets, under strict audit controls, and cannot be reached by the bank’s creditors. Therefore, the need for FDIC insurance is generally limited to uninvested trust cash, such as income awaiting distribution. Under FDIC regulations, uninvested funds held or deposited by the bank as trustee for a revocable trust are insured together with other deposits of the trust’s owner up to a total of $100,000.
