ALEXANDRIA, Va. — The NCUA Board has approved an interim rule change which eliminates the concept of a “qualifying beneficiary” of a revocable trust account so coverage can be based on the naming of any beneficiary.
The change, which came a week after the FDIC made a similar policy shift, allows friends, in-laws, cousins, nieces and nephews are allowed to be beneficiaries under these insured accounts. Previously, only spouses, parents, siblings, children and grandchildren qualified as beneficiaries.
Last week, NAFCU wrote a letter to the NCUA in which it said that without the change, credit unions could lose deposits to banks because of the FDIC's decision.
The public has 60 days to comment about the change.
Continue Reading for Free
Register and gain access to:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
