Kingman Lambert Cynthia A. Lambert Kristen Lambert Kimberly Lambert v. Federal Deposit Insurance Corporation
Opinion
Opinion
Boochever, J.
Kingman and Cynthia Lambert (Lambert) appeal the district court’s grant of summary judgment in favor of the Federal Deposit Insurance Corporation (FDIC) in an action reviewing the FDIC’s denial of Lambert’s insurance claims. Lambert seeks insurance payments in excess of $100,000, the statutory limit for deposits by an individual. We conclude that Lambert is entitled to insurance coverage for two accounts under 12 C.F.R. § 330.3 (1985), which provides for additional coverage when a trust account is payable to a spouse upon the death of the depositor.
FACTS
Kingman Lambert deposited assets of the Lambert Family Trust into three savings accounts at Heritage Bank in Anaheim, California. The trust was established by Kingman and his wife, Cynthia Lambert, as trustors and provides that, upon the death of either trustor, the trust estate shall be divided into three shares designated as Trusts A, B, and C. If King-man predeceases his spouse, all of the community property in the trust goes to Trust A with nothing reverting to Trusts B or C. If Cynthia dies first, Kingman’s share of the community property goes to Trust A and Cynthia’s share would be divided between Trusts B and C.