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#2130324 - 05/12/17 06:28 PM Deposit account in Trust
Marisa Offline
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Joined: Apr 2016
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I have a customer who has their accounts set up in her trust, she is also trustee for her trust. According to the trust document the successor trustee can serve following the death of the trustee. It has been my experience in working with a trusts they have some sort of language if the trustee is unable to handle their affairs they can resign or at times a physician has provided the needed paperwork to be able to update the account to a successor trustee. This trust does not state that.... Would this customer need to have their trust revised to be able to resign as trustee and have a successor trustee added to the accounts? Thanks!

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#2130327 - 05/12/17 06:30 PM Re: Deposit account in Trust Marisa
rlcarey Online
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rlcarey
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Galveston, TX
That is not a question that the bank should be concerned with. That is between her and her estate planner or her legal counsel or both.
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#2130328 - 05/12/17 06:33 PM Re: Deposit account in Trust Marisa
Elwood P. Dowd Offline
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Elwood P. Dowd
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There is no checklist for required contents on a trust. Some include contingency plans, some do not. Unless you are an attorney who's been asked to review the document, offering advice would be presumptuous..
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#2130344 - 05/12/17 07:27 PM Re: Deposit account in Trust Marisa
ocbeach Offline
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Joined: Sep 2015
Posts: 47
Maryland
While you shouldn't offer legal advice, there is still the question of who would be able to manage the account if the trustee becomes disabled. If the customer used a customizable online form or legal counsel who didn't consider disability, it would be better to point it out now rather than when you have an unauthorized person writing checks from the account because the trustee has become disabled.

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#2130347 - 05/12/17 07:39 PM Re: Deposit account in Trust Marisa
Marisa Offline
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Joined: Apr 2016
Posts: 12
Thank you for your comments. I don't feel I stated my question clearly - I agree I would not want to offer advice. The customer would like to submit a letter resigning as trustee and have the successor trustee added to her accounts... Because of the way she set up her trust, I would be correct in stating according to her trust documents provided, I would not be able to do that until the death of the current trustee?

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#2130348 - 05/12/17 07:42 PM Re: Deposit account in Trust ocbeach
BrianC Online
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BrianC
Joined: Nov 2004
Posts: 6,694
Illinois
Quote:
it would be better to point it out now rather than when you have an unauthorized person writing checks from the account because the trustee has become disabled.


Randy and Ken's advice is better here. We can speculate about what "could" happen, but I can play the other side of the coin. The bank "innocently" points out today that there is no disability provision so your customer amends their trust. Down the line the disability occurs and the new trustee steps in, but other family members aren't happy with the designation and try and blame the bank for pushing for the alteration to the trust document and adversely impacting their inheritance.
Last edited by BrianC; 05/12/17 07:43 PM.
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#2130349 - 05/12/17 07:45 PM Re: Deposit account in Trust Marisa
BrianC Online
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BrianC
Joined: Nov 2004
Posts: 6,694
Illinois
Quote:
I would be correct in stating according to her trust documents provided, I would not be able to do that until the death of the current trustee?


Since none of us have read the trust document, we cannot comment on what authority it grants or doesn't grant the current trustee. If you are not sure, request bank counsel to review the verbiage in the document and provide a legal opinion.
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#2130353 - 05/12/17 07:52 PM Re: Deposit account in Trust Marisa
Marisa Offline
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Joined: Apr 2016
Posts: 12
Will do - Thanks for your help

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#2131318 - 05/22/17 04:02 PM Re: Deposit account in Trust Marisa
SJB Offline
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SJB
Joined: Jun 2002
Posts: 1,210
California
Slavery was abolished years ago and any trustee can resign at any time for whatever reason. I would tell the trustee that she should contact her attorney and tell him/her what she wants to do and the attorney can help.
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