How to sign as Trustee

[LdiJ]

LdiJ - I would suggest that you advise any of your clients who have not funded their trust to speak to a professional who knows about trusts.

For reference, do a Google search for the phrase "Does a revocable trust need to be funded prior to death?" and read a bit.

That's because, frequently, the Tax ID # for trusts is that of the grantor.

Not if its funded (my definition of funded). The trust has to have its own EIN and the asset has to be under that EIN. Any account or asset that carries the SSN of the granter is not funded in my definition of funded.

 

[Zigner]

Not if its funded (my definition of funded). The trust has to have its own EIN and the asset has to be under that EIN. Any account or asset that carries the SSN of the granter is not funded in my definition of funded.

You really ought to STOP advising when you have no clue. Your definition is irrelevant.

 

[LdiJ]

Is the checking account in the name of the trust? If not, then you really can't sign the checks without a power of attorney from your folks.

Op, if you are signing anything for the actual trust itself, yes it would be appropriate for it to be signed as John Smith, Trustee.

I apologize for the hijack of your thread.

 

[Thank_You]

Is the checking account in the name of the trust? If not, then you really can't sign the checks without a power of attorney from your folks.

Yes, the checking account is in the name of the trust. All of my parents' accounts, bank accounts, stock brokerage accounts, accounts with any financial institutions are titled in the name of the trust, as is their real estate.

When my parents sign checks on one of their trust titled checking accounts they simply sign their name. That works fine. But if I am signing it, my only relationship to the accounts is as trustee, so I am asking if I should sign it "My signature, trustee," and if the bank or financial institution to whom the check is presented will accept it this way. I assume they will, but want that to be confirmed by someone who has experience with this.

To be clear I am of course listed as a trustee with all of the institutions where my parents have these accounts. So the bank's records where the checking account will be shows I am a trustee.

Note I am not asking if the payee will accept a check signed this way because you have no way of knowing that. Hopefully that won't be an additional issue.

 

[Thank_You]

Op, if you are signing anything for the actual trust itself, yes it would be appropriate for it to be signed as John Smith, Trustee.

I apologize for the hijack of your thread.

Sorry, I didn't see the second page of posts before I wrote my previous post.

No need to apologize, it's an interesting discussion. But I'd still like to try to hit the nail on the head specifically with regard to checks as I posed it in my immediate last post. I assume you are saying this applies to checks as well, but would appreciate affirmative confirmation. Thanks again to all who replied.

 

[Zigner]

You should include an indicator that you are signing as the trustee.

 

[TrustUser]

You really ought to STOP advising when you have no clue. Your definition is irrelevant.

agreed. if there are exceptions, i have never seen one. but the overwhelming percentage of grantor revocable trusts use the social security number of the grantor. and they typically are always funded. otherwise they do no good. a trust can only control assets that have been titled to it.

 

[Thank_You]

Okay, here’s a hypothetical on this topic that is well within the realm of possibility. I am curious about this.

My parents’ home is titled in the trust on which I am a trustee. Suppose I was signing a contract with a construction company to do some kind of work on their home.

Is this trust business that I would sign as a trustee?

OR

Is this something that would require a POA that I would sign as attorney-in-fact (assuming I have been granted POA)?

What is/are the specific requirement/s that makes something trust business as opposed to not trust business?

Of course in a case like this there is also a question about whether the contractor would accept my signature as either attorney-in-fact OR as trustee. I’m not sure that everyone would accept this signature either way. These kinds of things worry me. What if I need to sign something along these lines and they don’t accept it?

 

[Zigner]

It really depends on who's contracting for the work.

Frankly, the answers to your questions are bordering on legal advice. You may wish to speak to a local attorney if you are unclear on your obligations as a trustee.

 

[Thank_You]

It really depends on who's contracting for the work.

Exactly. Who IS contracting for the work? Since the house is in trust is it the trust that is contracting for the work?

I'm guessing that the contractor would want whoever is signing to be personally liable and probably wouldn't accept it any other way. And the main point of signing as a trustee is that I don't want to be held personally liable for things related to my parents assets. So it seems things like this are quite complicated and every situation is different.

 

[Zigner]

Exactly. Who IS contracting for the work? Since the house is in trust is it the trust that is contracting for the work?

That depends on the contract. Be up-front with the contractor.

 

[LdiJ]

Sorry, I didn't see the second page of posts before I wrote my previous post.

No need to apologize, it's an interesting discussion. But I'd still like to try to hit the nail on the head specifically with regard to checks as I posed it in my immediate last post. I assume you are saying this applies to checks as well, but would appreciate affirmative confirmation. Thanks again to all who replied.

If the account is named as a trust account then yes, signing as "trustee" would be appropriate.

 

[LdiJ]

That depends on the contract. Be up-front with the contractor.

I agree with this. If fair terms are set that protect all parties, it shouldn't be difficult to put together a contract that works.