08-EA-27: NCUA: Share Insurance for Revocable Trust Accounts

Recently, the National Credit Union Association (NCUA) issued an interim final rule regarding its share insurance rules for revocable trust accounts. The interim rule was issued just days before the enactment of the Emergency Economic Stabilization Act of 2008, by which Congress increased share insurance coverage of accounts covered from $100,000 to $250,000. Thus, the effect of the increase in coverage is not reflected in the interim final rule; however, by operation of law, coverage will generally henceforth be up to $250,000 per account beneficiary (maximum of $1.25 million per account) until December 31, 2009. The amount will revert back to $100,000 per beneficiary (maximum of $500,000 per account) unless Congress amends the expiration date.