I recently performed an audit of trust assets and found some safekeeping items in the trust asset safe deposit box. Is there an reason, or requirement, to segregate a trust department's safekeeping items from trust assets (coin, jewelry, stock certificates, etc...)?

Why would the Trust Department have safekeeping items (You might be wondering the same thing). To me the Trust Department either has trust assets or it does not. I would say they should be segregated, the Trust Department has responsibility for the assets they hold.

Define "safekeeping". You mean the trust department is taking possession of valuables and storing them for the customer and they are not trust assets? I am confused.

Yes, I mean the trust department is taking possession of property and storing it for the customer, charging a fee, and it's not in connection with a trust account. The FDIC Trust Exam Manual refers to this, but isn't really clear on segregating these items from trust assets.