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Compliance blog offers guidance on trusts, FOM
With an increase in questions on field of membership (FOM) in relation to trusts, a new NAFCU Compliance Blog post reviews NCUA guidelines for credit unions. Like any other credit union member, trusts must qualify for membership by being within a credit union's FOM, pay par value and meet any other membership requirements at the discretion of the credit union.
NAFCU Regulatory Compliance Specialist Alma Calcano explains that both revocable and irrevocable trusts are eligible for membership with credit unions, based off of various opinion letters issued by the NCUA. When qualifying a trust for membership, a credit union has two options:
- the trust falls within the field of membership; or
- the trust account is open based on individual membership.
Calcano also gives insight and resources on the recordkeeping requirements that are required in order to insure a trust account, including the NCUA's Share Insurance Estimator to calculate share insurance coverage.
Read Calcano's full blog here, and those interested can sign up to receive new NAFCU Compliance Blogs posts in their inbox every Monday, Wednesday and Friday here.