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#14883 - 04/05/02 06:20 PM Corporate to Trust?
Teresa Mulvey Offline
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Teresa Mulvey
Joined: Jun 2001
Posts: 18
Have a customer with a corporation who wants to "change" the corporate account into a Revocable Trust account. Is that a possibility or would the customer need to write a check on the corporation to the Trust to open that account in order to have a clean asset transfer? The customer's investment advisor said the bank should have no problem doing this. Has anyone ever had this before? Please advise. Thanks.
Last edited by Teresa Mulvey; 04/05/02 06:22 PM.
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#14884 - 04/05/02 10:05 PM Re: Corporate to Trust?
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 39,858
Cape Cod
Let's see, the funds are in a corporate account, and the investment advisor feels the bank should have no problem changing that account into a revocable trust account. Right?

WRONG! I just love the way that people in other professions love to assume they know more about banking than we bankers do! Do you remember that tired old joke about the plumber who, when asked what his rates were, replied "$50 an hour. $75 an hour if you help"?

You hit the nail on the head when you suggested you'd want to see the funds move from the corporation. I would, too! So would the IRS and an accountant, and a few other folks. There are correct and incorrect ways to wind down a corporation, and what's been suggested isn't one I'd recommend. (Of course, you aren't going to ridicule the plumber/investment adviser when you tell the customer "No"!)

Stick to your guns, Teresa! And let's hope the investment advisor is better at investment advice than at banking!
John S. Burnett
Fighting for Compliance since 1976
Bankers' Threads User #8

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#14885 - 04/05/02 10:11 PM Re: Corporate to Trust?
JMB Offline
Joined: Mar 2002
Posts: 59
Does your corporate agreement indicate that accounts are non-transferrable?

Are there different tax id numbers? If so, have them write the check so that one entity ends and the other begins.

Guess I'm in favor of having them close one account and opening the next - what would be the benefit to them of just changing the name? They will need new checks anyway.

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