The Federal Deposit Insurance Corporation is amending its regulations governing deposit insurance coverage. The amendments simplify the deposit insurance regulations by establishing a “trust accounts” category that governs coverage of deposits of both revocable trusts and irrevocable trusts using a common calculation, and provide consistent deposit insurance treatment for all mortgage servicing account balances held to satisfy principal and interest obligations to a lender. The rule is effective on April 1, 2024.

Topics include:

• Merger of Revocable and Irrevocable Trust Categories
• Calculation of Coverage
• Eliminating Certain Requirements Eligible Beneficiaries
• Retained Interests and Ineligible Beneficiaries’ Interests
• Future Trusts Named as Beneficiaries
• Naming of Beneficiaries in Deposit Account Records
• Presumption of Ownership
• Bankruptcy Trustee Deposits
• Deposits Covered Under Other Rules
• Institutional Trusts
• Mortgage Servicing Accounts