NCUA changes revocable trust coverage
ALEXANDRIA, Va. (10/6/08)--The National Credit Union Administration (NCUA) Friday announced changes to simplify its rule determining the coverage available on revocable trust accounts--commonly called payable-on-death accounts or living trust accounts.
Applying to existing and future revocable trust accounts at all federally insured credit unions, the rule change eliminates the concept of qualifying beneficiaries, so coverage is based on the naming of virtually any beneficiary.
The interim final rule is effective immediately and is substantially similar to one adopted recently by the Federal Deposit Insurance Corp.
The NCUA is seeking comments for a 60-day period, to begin when the rule is published in the Federal Register.
In light of the new $250,000 insurance coverage that went into effect on Friday, the agency will have to re-issue the interim rule, noted Kathy Thompon, CUNA senior vice president/associate general counsel for regulatory compliance and legislative analysis.
It is not clear how NCUA will adjust the new $500,000 rule, she added.
Use the resource link below to read the new regulation.
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