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NCUA Simplifies Share Insurance Rules for Trust Accounts

Key Points:

- NCUA is merging revocable and irrevocable trust categories into a single "trust accounts" category for share insurance purposes

- New calculation method: Insured up to $250,000 x number of beneficiaries (max 5), capped at $1.25 million per grantor per credit union 

- Changes take effect December 1, 2026 to allow time for credit unions and members to prepare

- Expands coverage for mortgage servicing accounts to include servicer advances

- Provides more flexibility in recordkeeping requirements for determining insurance coverage

- Aims to simplify rules, facilitate faster insurance payouts, and align with recent FDIC changes

- Most members' coverage expected to remain the same, but some with complex trusts may see changes

The episode reviews the new rules in detail and provides examples of how coverage will be calculated under the changes. Credit unions should familiarize themselves with the new trust account rules before they take effect in 2026.

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