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.
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