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Conservator Makes Transfers to Personal Account

Answered by: 
Ken Golliher

Question: 
Alisa is a court appointed conservator on an adult account. She also has a personal checking account with the bank. Should she be allowed to make online or recurring transfers from the guardian account to her personal account? I told her it's not allowed, but she said other banks let her do it. Could this be true?
Answer: 

If you rely on what customers tell you "other banks do" and amend your processes accordingly you're on the road to ruin.

Transferring funds from a fiduciary account to the account of an individual would put your bank on notice of a breach of fiduciary duty. It could and should make your bank responsible for any resulting losses.

First published on BankersOnline.com 1/10/11

First published on 01/10/2011

Filed under: 
Operations
Filed under operations as: 
Fiduciary
IT
Transfers

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