Debit Card for Trustee on Revocable Trust Account
Answers by Brian Crow, BOL Guru Guru Bio
Question: I have a revocable trust account and the trustee would like a visa check/debit card with it. Are there any restrictions to why she should not be able to get a debit card?
Answer: There is no restriction from VISA for issuing a debit card to a trustee. As a trust is an entity, the card would be best issued under your business debit card agreement if you have one. Reg E does not cover formal trusts, but giving the trustee a consumer card with the consumer disclosures may contractually obligate you to provide more protection than you are legally bound to do. Also, many trusts are very specific in the powers that the grantor provides the trustee (even if they are one in the same person.) You may wish to have bank counsel review the trust agreement to ensure that the trustee has the authority to request a debit card. This will avoid opening the bank up to any liability from the trust beneficiaries claiming that the bank allowed the trustee to act improperly.
BankersOnline is a free service made possible by the generous support of our advertisers and sponsors. Advertisers and sponsors are not responsible for site content. Please help us keep BankersOnline FREE to all banking professionals. Support our advertisers and sponsors by clicking through to learn more about their products and services.