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Common Issues and Errors with Living Trust Accounts

Recorded on November 06, 2018

More customers than ever before are putting their assets into revocable trusts and naming themselves trustee. Unlike the type of trust handled in a financial institution's trust department, where the financial institution is the fiduciary and manages the trust property, the trusts showing up in your deposit account area are almost always set up so that the grantor of the trust is also both the trustee and the beneficiary. In other words, the person setting up the trust is still so in control of the trust assets that the IRS treats the trust as a disregarded entity, as if the grantor still had the assets in his personal name.

Sometimes the customer has had an attorney draft the trust instrument. In other instances, he's plucked one off the internet and has tried to simply fill in the blanks. When your customer brings in a trust and wants to put deposit accounts or CDs into it, you need to know what to say, what to do, what questions to ask, what documentation to obtain.

The worst feeling in the world is when you're faced with a task you feel ill-equipped to handle. Many bankers feel that way when it comes to helping customers who have created revocable trusts. This Webinar will supply you with the information you need to confidently handle such accounts. From terminology to deposit insurance, from TIN requirements to account styling, we'll put it all in context for you. We'll also address common misconceptions, problems to avoid, and what to do about successor trustee transitions. This program is the antidote to "trust dread."

What Can You Expect to Learn?

  • What documentation you need to obtain - and why
  • What TIN to use
  • How to style the account
  • What questions to ask
  • How deposit insurance applies
  • How recent changes to the FDIC rules impact revocable trusts accounts
  • Whose signatures you need
  • Who else can sign on the account
  • The interplay between a power of attorney and a revocable trust
  • What happens when the grantor dies
  • How successor trustees come into play
  • Why it's imperative to know whether the trust is revocable or irrevocable

In this program Mary Beth Guard has gives you the information you need to get the job done, even when some of those customer requests seem "off the wall."

Frontline staff handling new accounts, head tellers, customer contact, and other bank personnel who want more information about living trust documents.

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