Revocable trust accounts are testamentary deposit accounts owned by one or more people who designate the account to pass to one or more named beneficiaries upon the death of the account owner(s). As the trust is revocable, the trust grantor can add, change, or remove the beneficiaries at any time. Irrevocable trust accounts are created by a written trust agreement or statute, and the owner contributes deposits or other property to the trust but gives up all power to cancel or change the trust.

Now that both will fall under the new trust account category, the updated rule will allow for more timely deposit insurance decisions for trust accounts if a bank fails. This will streamline the review process of trust agreements required in today’s current trust rules.