Sequestered Account Law and Legal Definition
Sequestered account means a bank account that is separated, frozen, and impounded on court orders. In a sequestered account the account holder will have no right to access the account balance without the court's approval. Since sequestered account are created through legal action or court order, such accounts are usually segregated from other accounts at an institution and are kept in a separate file.
In In re Thomas, 2008 Ohio 2409 (Ohio Ct. App. 2008), the court held that “When, in a verification form executed by a bank officer accompanying a deposit, language is used indicating that the institution agrees that the deposit, together with accumulated interest, shall be held and no part thereof released until the minor on whose behalf the deposit is made attains the age of majority or upon further court order, the accounts are referred to as "impounded accounts" or "sequestered accounts."”
