https://ncua.gov/consumers/share-insurance-coverage/frequently-asked-questions-about-share-insurance
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This was posted on the NCUA site on May 28, 2024. Must have started April 1, as the FDIC insurance did.
New NCUA Rules for Revocable Trust Deposits
For Revocable Trusts with Six or More Beneficiaries: All revocable trust funds belonging to one trust owner are insured to the greater of either $1,250,000 or the aggregate amount of all the beneficiaries’ actual proportional interests in the revocable trust(s), up to a maximum of $250,000 per beneficiary.
For Revocable Trusts with Six or More Beneficiaries: All revocable trust funds belonging to one trust owner are insured to the greater of either $1,250,000 or the aggregate amount of all the beneficiaries’ actual proportional interests in the revocable trust(s), up to a maximum of $250,000 per beneficiary.
POD Account Example: Bill has a $250,000 POD account with his wife Sue as beneficiary. Sue has a $250,000 POD account with Bill as beneficiary. In addition, Bill and Sue as co-owners, also both members of the credit union, have a $1,500,000 POD account with their three named children as beneficiaries.
Account Title Account Balance Amount Insured Amount Uninsured
Bill POD to Sue $250,000 $250,000 $0
Sue POD to Bill $250,000 $250,000 $0
Bill and Sue POD
to 3 children $1,500,000 $1,500,000 $0
Total $2,000,000 $2,000,000 $0
Note in the past a joint account with 2 beneficiaries used to
be insured to 1 million dollars. No longer that way.
These three accounts totaling $2,000,000 are fully insured because each member-owner is entitled to $250,000 of coverage for each beneficiary. Bill has $1,000,000 of insurance coverage because he names four beneficiaries — his wife in the first account and his three children in the third account. Sue also has $1,000,000 of insurance coverage — $250,000 for each of her beneficiaries — her husband in the second account and her three children in the third account.
When calculating coverage for revocable trust accounts, keep in mind that:
Coverage is based on the number of beneficiaries (and, if the account has six or more beneficiaries, the interests of the beneficiaries) named by each owner. Additional coverage is not provided for the trust owner(s). For example, if a father owns a $750,000 POD account naming his two sons as beneficiaries, the father's account is insured for $500,000 because he is entitled to $250,000 of deposit insurance coverage for each eligible beneficiary he has named in the account. The remaining $250,000 is uninsured. A common misconception is that deposit insurance is determined by counting or adding the total number of individuals listed on a POD account. Coverage is NOT calculated as owners plus beneficiaries times $250,000.
NCUA insurance limits apply to all revocable trust deposits — including all POD/ITF and living trust accounts — that a trust owner has at one insured credit union. In applying the $250,000 per beneficiary insurance limit, the NCUA combines an owner's POD accounts with the living trust accounts that name the same beneficiaries at the same credit union.
NCUA insurance is provided to any co-owner that is a member of the credit union. If a co-owner is not a member of the credit union, coverage is not provided and only the primary member-owner’s interest of the funds is insured.
First, the new rules provide that the owner of a revocable trust deposit is eligible to receive per-beneficiary coverage for any beneficiary named in the revocable trust, as long as the beneficiary is an individual, a charity or another nonprofit organization (recognized as such in the Internal Revenue Code).
Second, the new rules provide for a streamlined method of calculating insurance coverage depending on the number of beneficiaries who are entitled to receive the deposits when the trust owner (or owners) dies. Specifically, the rules provide that:
For Revocable Trusts with Five or Fewer Beneficiaries: All revocable trusts belonging to one trust owner are insured up to $250,000 times the number of beneficiaries. For example, if a revocable trust owner has one beneficiary, his or her maximum coverage is $250,000 for all trust funds at the same insured credit union. If a revocable trust owner has five beneficiaries, his or her maximum coverage is $1,250,000 for all trust funds at the same insured credit union.
For Revocable Trusts with Six or More Beneficiaries: All revocable trust funds belonging to one trust owner are insured to the greater of either $1,250,000 or the aggregate amount of all the beneficiaries’ actual proportional interests in the revocable trust(s), up to a maximum of $250,000 per beneficiary.