BAnk and trust documents

[candg918]

What is the name of your state (only U.S. law)? OK

When I tried to open an account in the name of a trust, the bank wanted a copy of the trust to review before opening the account. Is this normal? I thought one main advantage of a trust is privacy.

Among my parents' papers, I found a "Declaration of Trust Ownership" created by their attorney. Should a document of this type suffice?

Thanks.

 

[efflandt]

What makes you think a trust is for privacy? It is usually to specify how assets are to be used or who they should benefit, even if whoever sets up the trust is incapacitated or dead. The bank needs to know who to report to the IRS for the account and who should or should not have access to the account (trustees, beneficiaries). Is it a revocable living trust or irrevocable trust? Since trust documents are a mystery to you, it sounds like you may not have even legally set up the trust yet.

 

[Antigone*]

What is the name of your state (only U.S. law)? OK

When I tried to open an account in the name of a trust, the bank wanted a copy of the trust to review before opening the account. Is this normal? I thought one main advantage of a trust is privacy.

Among my parents' papers, I found a "Declaration of Trust Ownership" created by their attorney. Should a document of this type suffice?

Thanks.

It is typical for the bank to request a copy of the trust if you are going to open an account in the name of the trust. I do it 24/7, even in my sleep. We don't actually need the whole thing, but it is much easier to request the complete trust than to weed out the parts we need.

 

[candg918]

There are actually several trusts that I need to establish accounts for - the typical revocable ones and also irrevocable educational and special needs trusts. The attorney that I spent thousands of dollars with for these gave us documents and nothing else. (You don't want to know my opinion of how she handled this!) I don't want to start all over again.

I do not want these managed through the Trust Department. They will be primarily funded via life insurance in the future but will have some initial deposits.

The documents I gave the bank officer were just left in her office; I do not think it was ever reviewed by an attorney (she was not). She left the bank so the documents were just returned to me without any account being opened. I just don't think these need to be available to anyone with access to the general files.

Is it not the reponsibility of the trustee to determine that the funds are properly distributed? Why should the bank have the authority to approve or deny transactions initiated by the trustee if the bank is not the trustee?

Perhaps my best solution is to find a new bank to handle these.

 

[Antigone*]

There are actually several trusts that I need to establish accounts for - the typical revocable ones and also irrevocable educational and special needs trusts. The attorney that I spent thousands of dollars with for these gave us documents and nothing else. (You don't want to know my opinion of how she handled this!) I don't want to start all over again.

I do not want these managed through the Trust Department. They will be primarily funded via life insurance in the future but will have some initial deposits.

The documents I gave the bank officer were just left in her office; I do not think it was ever reviewed by an attorney (she was not). She left the bank so the documents were just returned to me without any account being opened. I just don't think these need to be available to anyone with access to the general files.

Is it not the reponsibility of the trustee to determine that the funds are properly distributed? Why should the bank have the authority to approve or deny transactions initiated by the trustee if the bank is not the trustee?

Perhaps my best solution is to find a new bank to handle these.

The bank's trust department is not looking to involve itself in your accounts or the transactions you intend to conduct.

You spent thousands of dollars setting these trusts up, and the bank has the fiduciary responsibility to set them up correctly.

If your current bank is to "picky" about their policies and procedures, then maybe you can find one that doesn't give a darn. Heck who cares if things don't get done right just don't come crying to us when that bank is #100 on the list of bank failures.

 

[candg918]

I had expected that the attorney would direct me in completing the set-up, but she decided product liability law was more rewarding. She just gave us the documents even though she had promised to make certain everything was properly titled and transferred. She was paid in advance by the document even though there are instances of mirrored pairs of documents for my husband and myself.

Once I provide the financial institution a copy of the trust, what should I expect them to do with it? This is a bank with many branches. Should they keep it on file or just take the necesssary information and return it to me? Should they insist on the original or should a copy be sufficient? If they do keep a copy, where should I expect it to be filled and under what security? I would expect it to be treated similar to mortgage documents and not just end up in someone's file drawer.

I would expect the information that they need to be the name of the trust, the trustee, any successor trustees, and the tax id. What other information is needed. Does this vary by state? Is the procedure prescribed by law or is it left to the individual institutions?

Thank you for helping me straighten the mess I was left with out.

 

[Antigone*]

I had expected that the attorney would direct me in completing the set-up, but she decided product liability law was more rewarding. She just gave us the documents even though she had promised to make certain everything was properly titled and transferred. She was paid in advance by the document even though there are instances of mirrored pairs of documents for my husband and myself.

Once I provide the financial institution a copy of the trust, what should I expect them to do with it? This is a bank with many branches. Should they keep it on file or just take the necesssary information and return it to me? Should they insist on the original or should a copy be sufficient? If they do keep a copy, where should I expect it to be filled and under what security? I would expect it to be treated similar to mortgage documents and not just end up in someone's file drawer.

I would expect the information that they need to be the name of the trust, the trustee, any successor trustees, and the tax id. What other information is needed. Does this vary by state? Is the procedure prescribed by law or is it left to the individual institutions?

Thank you for helping me straighten the mess I was left with out.

Your expectation of the information that is required is correct. Whatever you do, do not give them your originals ~ copies are fine. They may keep a copy of the pertinent pages for their legal files. It is up to each bank and thier audit procedures what they will keep.

I think you are making this bigger than it needs to be. Just take a copy of the trust with you and you'll be fine.

take care, ana

 

[candg918]

Thank you for your help! After my attorney experience, I am apprehensive about all of these decisions (I picked her). My DH is clueless about and disinterested in these things so I have to handle it all.

I agree that I am making it more complicated that necessary if I were going to be handling it eventually. I need to leave detailed instuctions in my notebook for my children who are the successor trustees.

Again, thanks for your patience.