Requiring "Trustee" After Signature - Ken Golliher

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Requiring "Trustee" After Signature
by Ken Golliher, BOL Guru
BIO AND CONTACT INFO

Question: When opening a trust account, should we require the trustees to include the designation as trustee after their signature? Example: Jane Doe, Trustee. Is it sufficient to have the signer listed in our records as trustee? What are the consequences if the signer does not indicate he/she is a trustee?

Answer: No, you are not required to have a customer indicate a fiduciary capacity as a part of their signature; e.g., trustee, attorney-in-fact, authorized signer, etc. However, drawers who add those titles do so to limit their personal liability on the item. For example, the customer who signs Joshua Chamberlain, Trustee is not agreeing to any personal liability on the instrument - he is only obligating the trust on the drawer's promises.

First published on BankersOnline.com 09/2/03

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