DEFINITION of 'Sequestered Account'

A deposit account that is seized through legal action or court order. Funds cannot be removed from a sequestered account without the approval of the seizing party. Sequestered accounts are usually segregated from other accounts at an institution and are kept in a separate file.

BREAKING DOWN 'Sequestered Account'

Virtually any type of account can be sequestered, including bank and brokerage accounts. IRAs and qualified plans are more difficult to sequester, as they are protected by federal law from most types of creditors. Usually only the IRS has the authority to sequester these accounts.

RELATED TERMS
  1. Sequestration

    A term adopted by Congress to describe a fiscal policy process ...
  2. Chart Of Accounts

    A listing of each account a company owns, along with the account ...
  3. Bank Deposits

    Money placed into a banking institution for safekeeping. Bank ...
  4. Segregation

    Segregation is the separation of an individual or group of individuals ...
  5. Attachment

    A legal term referring to the action of seizing property in anticipation ...
  6. Sub Account

    A segregated balance of funds (account) for which the bank acts ...
Related Articles
  1. Investing

    What Is A Trading Account?

    A trading account enables an investor to buy and sell securities.
  2. Personal Finance

    Explaining Checking Accounts

    A checking account is an account at a financial institution, usually a bank, that allows for deposits and withdrawals.
  3. Investing

    What is a Demand Deposit?

    A demand deposit is any type of account where the money in the account may be withdrawn at any time without prior notice to the financial institution.
  4. Personal Finance

    What is an Account Balance?

    An account balance represents the total amount of money in a financial account at any given moment.
  5. Personal Finance

    4 Savings Accounts for Investors

    Curious about the best saving accounts and which ones suit investors?
  6. Investing

    A Guide to Bank Accounts

    Find out which type of bank account suits your specific needs.
  7. Personal Finance

    Understanding Savings Accounts

    A deposit account held at a bank or other financial institution that provides principal security and a modest interest rate.
  8. Personal Finance

    Accountant: Job Description & Average Salary

    Discover what the job description of an accountant entails, along with education and training, salary and skills necessary for success.
  9. Trading

    Pick the Right Brokerage Account for Options Trading

    Follow these steps to pick the right options brokerage account depending on your trading needs and style of trading.
  10. Insights

    3 Reasons Banks Can Freeze Your Account

    Learn about the reasons why a bank account can be frozen. Discover if it is legal for creditors to freeze your account and withdraw money.
RELATED FAQS
  1. Can a creditor seize my retirement savings?

    Whether a creditor can seize your retirement savings will depend on the type of account in which you are holding your retirement ... Read Answer >>
  2. For what types of accounts are demand deposits available?

    Learn about the different types of accounts designated as demand deposit accounts, such as savings accounts and money market ... Read Answer >>
  3. Are bank accounts escheatable?

    Learn why it is important to keep in contact with every financial institution you deal with to make sure your assets are ... Read Answer >>
  4. What does it mean when the shares in my account have been liquidated?

    An account liquidation occurs when the holdings of an account are sold off by the firm in which the account was created. ... Read Answer >>
  5. What determines the interest rate in my money market account?

    Placing funds in a money market account may provide a higher interest rate than a savings account due to the underlying securities ... Read Answer >>
  6. Why would you keep funds in a money market account and not a savings account?

    Read about the differences between money market accounts and savings accounts, and see why a depositor would elect a money ... Read Answer >>
Hot Definitions
  1. Trumponomics

    Trumponomics is a term for the economic policies of President-elect Donald Trump.
  2. Universal Health Care Coverage

    An organized healthcare system that provides healthcare benefits to all persons in a specified region. Many countries, such ...
  3. Davos World Economic Forum

    The annual meeting of the World Economic Forum hosted at Davos—a small ski town in Switzerland—in January each year is among ...
  4. Smart Home

    A convenient home setup where appliances and devices can be automatically controlled remotely from anywhere in the world ...
  5. Efficient Frontier

    A set of optimal portfolios that offers the highest expected return for a defined level of risk or the lowest risk for a ...
  6. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
Trading Center