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#174137 - 03/26/04 10:12 PM Legal Trusts
Anonymous
Unregistered

What are a bank's responsibilities regarding trust accounts? We do not have a trust dept., but we have many customers who have their accounts in the name of a living trust. I know how to set them up, but when the trustor dies, what do we need to rely on when distributing the funds? My staff and I are not attorneys and many of these trusts are 50-100 pages long and have many amendments. Does a successor trustee need to bring us a trust certification from their attorney? I have had many tense moments with customers claiming to be the successor trustee of a trust when the original trustor is deceased. I'm not really sure what type of proof they need to provide to us. Any help is much appreciated!

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#174138 - 03/29/04 03:50 AM Re: Legal Trusts
BBoyd Offline
Diamond Poster
BBoyd
Joined: Mar 2002
Posts: 2,494
MI
It's common for us to request a copy of the entire trust, especially those sections which refer to the death of the Trustee and what follows. In some cases, it's typical for a revocable living trust to become irrevocable upon the death of the grantor/trustee, so you (or someone) will need to review the document very carefully. We have a corporate attorney who is available to review these if needed.

You should always require the proof from the individual requesting funds - if they can't provide it to your satisfaction, I'd refuse to do anything until they can provide it. That would also include, of course, the death certificate of the deceased Trustee, as well as the proof that they (or someone) has been named the Successor Trustee. You'll want to watch, too, for "Co-Successor Trustees" - that means there's more than one, and they have to act together, unless the document states otherwise.
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Opinions are mine and never to be taken as legal advice!

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#174139 - 03/29/04 01:03 PM Re: Legal Trusts
P*Q Offline

Power Poster
P*Q
Joined: May 2001
Posts: 8,458
Somewhere
Don't forget to check state law, many times state law governs these types of fiduciary issues.

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