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#38064 - 10/21/02 03:37 PM Living Trust Authorized Signers

Does anyone know if a Living Trust can have authorized signers as well as the Trustees? I have ran across a Living Trust account that has been set up with the husband and wife as trustee, but also has 2 authorized signers. I feel like I have read somewhere that there cannot be authorized signers. What about a POA for the account?

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#38065 - 10/21/02 05:22 PM Re: Living Trust Authorized Signers
Tina A Sweet Offline
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Tina A Sweet
Joined: Aug 2001
Posts: 1,033
Marysville, Ca.
I cannot remember where I found this, but we had the same experience. We do not allow authorized signers on Living Trust, only the trustees can sign. This is a legal obligation. Allowing other signers who are not related to the trust could put the insitution in a loss position with no legal help within the trust itself.
Tina A Sweet-Williams
AVP Special Assets

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#38066 - 10/21/02 07:46 PM Re: Living Trust Authorized Signers
Sam Ott Offline
Power Poster
Sam Ott
Joined: May 2001
Posts: 3,573
Norman, Ok, USA
The Trustee of a Living Trust is the only party who is authorized to conduct business for the Trust. Some states have statutes which authorize a Trustee to appoint an Agent for specific purposes, such as transact business on a specific account. Check with a local attorney if it is possible in your state.
Sam Ott
Associate Editor

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#38067 - 10/21/02 10:25 PM Re: Living Trust Authorized Signers

In most states the trust instrument will have to authorize delegation of power to sign for the trust.

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#38068 - 10/22/02 01:29 PM Re: Living Trust Authorized Signers
KSK Offline
Gold Star
Joined: Jul 2001
Posts: 357
A Living Trust is a customized documented drafted by an attorney for the specific needs of the donors and the beneficiaries of their choosing. That means that generally speaking no two trusts will be alike. While many trustee's retain the authority themselves to transact business on behalf of the trust, there may be instances where the trustees specifically appoint others to fulfill other functions on their behalf. This appointment however must be set-out in the actual trust agreement. These other duties could be such things like the investment or management of trust assets, the payment of bills, the caring for the needs of a beneficiary, etc.

My recommendation to you would be to only permit the trustees to be the authorized signers on the account unless the trustees are willing to supply you with the specific portion of the trust agreement that authorizes another party(ies) to transact business on behalf of the trust.

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