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Risk of Setting Up Qualified Income Trust Account

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Question: 
What are the risk of setting up a Qualified Income Trust account for the financial institution?
Answer: 

As long as the institution carefully establishes the name of the trust and the trustee, and obtains and uses the correct Social Security number for IRS reporting purposes, the risk should be no more or less than opening an account for any other trust. It is the responsibility of the trustee and grantor to ensure that the trust and its management fit the purpose of the trust under applicable laws and regulations.

The bank, however, should not provide any legal advice with regard to the establishment or management of the trust.

First published on BankersOnline.com 8/6/12

First published on 08/06/2012

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