Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

Washington
CUNA analyzes revocable trust rule
WASHINGTON (11/16/09)--The Credit Union National Association (CUNA)has posted analysis of a recent National Credit Union Administration (NCUA) action that finalized a rule eliminating the concept of "qualifying beneficiaries" for share insurance coverage purposes. Informal and formal revocable trust accounts, which are created by credit union members, are covered under the NCUA’s share insurance. These accounts are controlled by the creating member, and transfer any assets in the account to listed beneficiaries in the event that the accountholder dies. The final rule is very similar to an NCUA interim rule issued in October of 2008 which made coverage rules for revocable trust accounts easier to understand and apply. However, the new final rule does reflect a statutory Standard Maximum Share Insurance Amount increase to $250,000 level, the new $1,250,000 benchmark for revocable trust account coverage, and revised examples. The final rule also adopts the calculation created by the interim final rule to determine revocable trust coverage. Under the rule, owners of trust accounts with as many as five beneficiaries are insured up to $250,000 per beneficiary. For owners with over $1,250,000 in a revocable trust, and more than five beneficiaries of that trust, the trust is insured for the greater of $1,250,000 or the aggregate amount of the beneficiaries’ interests, limited to $250,000 per beneficiary. The NCUA final rules will become effective on Nov. 30. For more detailed analysis of the new rules, use the resource link.


RSS





print
News Now LiveWire
Maine credit unions put Food Mobile on the road to relieving hunger in rural areas http://t.co/R0xpt6BAZE
12 hours ago
.@TheNCUA's Matz: PALS should be exempt from Military Lending Act proposal #NewsNow http://t.co/Vy9uNhOIEr
12 hours ago
#NewsNow Iowa loan growth 3 times national bank rate http://t.co/fUvudPLg5d
14 hours ago
.@ICBA tallies its Home Depot data breach costs: $90M, 7.5M cards http://t.co/iJgRDC2AKZ
16 hours ago
.@icul's Jury elected treasurer of @WOCCU exec committee http://t.co/HEF1UChN8f
17 hours ago