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#1565208 - 06/15/11 03:57 PM Trust Accounts
lilbo52 Offline
New Poster
Joined: Feb 2011
Posts: 9
I had a customer come in and say that they have put everything from their car to their house, and other deposit accounts, under a Trust with no more documentation than a business card with the trust name on it. According to our new accounts handbook, we require the trust papers (we only keep a copy of the 1st & last pages) and proof of the Tax ID or EIN. The customer said that was absurd and of course they dont need any of that anywhere else so they will be moving their accounts. They wanted an interest bearing account and claimed they didn't teen a Tax ID or EIN because there was nothing to report to the IRS. Don't they have to claim interest earnings? Are the requirements for documentation on a trust different from state to state? I'm also wondering what other banks procedures are on this...

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#1565254 - 06/15/11 04:32 PM Re: Trust Accounts lilbo52
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 39,408
Cape Cod
Ask the customer if he or she has swampland for sale, too.

The customer is slinging BS and not even very artfully. If he truly believes what he is saying, he's in for some rude awakenings when reality reaches in and grabs him by the wallet.
John S. Burnett
Fighting for Compliance since 1976
Bankers' Threads User #8

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#1565289 - 06/15/11 05:21 PM Re: Trust Accounts John Burnett
Doug Hendrickson Offline
Power Poster
Doug Hendrickson
Joined: Oct 2009
Posts: 3,927
I would gladly let him take his business elsewhere, 'cause it sounds like this is just the start of the problems you're going to have with this customer.
I hear and I forget. I see and I remember. I do and I understand.--Confucius

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