Multiple trustee on an account

Hello,

If the Trust document names multiple trustees (more than 1) do all the trustees have to be listed on the bank account or can you open the account with just one?


Thanks,

You need to open it and list the trustees as the trust document stipulates. The trust lists multiple trustees for a reason, and each trustee has certain powers. To keep the bank from being sued, you need to set it up exactly as outlined by the trust document.

Go back to the trust document and see if there is a provision that says that the trustees may act independently of one another. If so, you could open the account for just one of the trustees. If not, you may be stuck with not only two trustees but a two-signatures required account, which no bank wants to manage.

If you have co-trustees that must act together, see if the trust allows the trustees to to cross-appointments of attorneys-in-fact, so that Trustee A is AIF for Trustee B and vice versa, but only for purposes of the trust. That could allow one trustee to act on behalf of both. Be very careful with this, though, and discuss it with bank counsel to ensure that it's allowed in your state.

Thank you for the reponses. I believe I have the instruction I need.

Tagging on to this thread...even though it's a few minutes old. I've been having a conversation with another employee who thinks that if the "and" is used where the trustees are listed, they must both be on the account. However, the trust document clearly says that "Either trustee, acting alone, may conduct business on behalf of the trust." So in this case, where Bob Jones and Betty Smith, Trustees of the Jones Family Irrevocable Trust, are listed with the "acting alone" section...can we open the account with only one of the trustees? For example:

Jones Family Irrevocable Trust
Betty Smith, Trustee (signer)

You should be able to do that - if you so choose. You are also free to get all trustee signatures regardless of what the trust document indicates. That way your employees do not have a play an attorney or sleep at a Holiday Inn Express

Thanks, rlcarey!

And the trustees get flexibility in handling the account.