|
|
|
 |
Compliance Gurus
Lending Gurus
Security Gurus
Marketing Gurus
Technology Gurus
eBanking Gurus
|
Can a living trust have a NOW Account?
by John Burnett, BOL Guru
BIO AND CONTACT INFO
Question: I am reviewing Reg D about types of accounts eligible and ineligible for NOW accounts to earn interest. It states that corporations, partnerships, LLC and organized business trusts are not eligible. We have an "living trust" account. What is a living trust and would it be eligible to have a NOW account and earn interest?
Answer: A "living trust" is one that is created during the trustor's/settlor's lifetime. It's contrasted with a testamentary trust which is created as part of a will, and only becomes active upon the trustor's death.
A living trust can be created for a lot of different reasons involving such things as tax and estate planning. It may be revocable or irrevocable.
If a living trust has no beneficiaries that are not eligible for a NOW, the trust is eligible.
First published on BankersOnline.com 04/21/03
Home | Compliance | Lending | Operations | Security | Marketing | Technology | eBanking
BOL Archives Privacy Policy Important Disclaimer Recommend This Site ! Contact Us
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.
|
|
|
Print Friendly!
Email This Article!
Discuss NOW!