social security number for successor trustee ?

[TrustUser]

my credit union now requires this. i was told that most financial institutions around my area, do as well. it came about here due to fraud during covid

just curious how rules are in other places

i wont ask a successor for his ss. so i cant set up a new trust at the credit union.

 

[adjusterjack]

i wont ask a successor for his ss. so i cant set up a new trust at the credit union

You haven't asked a question so I deduce that you are looking for an opinion.

My opinion, for the two cents that it's worth is that you are being foolish.

Banks ask for SS numbers all the time and people have no objection to providing it when they want the bank to provide a service for them that requires identification.

Long gone are the days when the SS number was "not for identification." In modern times it has become the "de facto" national identification number though I'm sure that there are still those that deny it.

 

[zddoodah]

You didn't ask a question or explain the situation that motivated your post. Nor does your post appear to raise any legal issue.

 

[Taxing Matters]

my credit union now requires this. i was told that most financial institutions around my area, do as well. it came about here due to fraud during covid

just curious how rules are in other places

i wont ask a successor for his ss. so i cant set up a new trust at the credit union

By federal law financial institutions must file one of the various types of Forms 1099 for dividends, interest, capital gains, etc that are earned on the investment. In order to do that, they need the Taxpayer Identification Number (TIN) for the account holder. For individuals that's either their SSN, or if they are eligible for a SSN, they must get an ITIN from the IRS. For every other taxpayer, the TIN is their EIN. However, if the entity is one that is disregarded (e.g. domestic single member liability companies, certain grantor trusts, etc) the prefers that the SSN/ITIN of the owner/trustee of the entity be reported rather than the EIN. There are now so many different information return filing requirements and detailed rules for them that banks are instructing employees to get the both EIN of the entity and the SSN of the owner/trustee when opening accounts so that no matter which one ends up being required the bank already has it and won't run the risk of penalties for screwing it up.

The federal government is taking a harder line on the correct filing of these forms, so by now most institutions already ask for both, and those that don't probably will soon. Financial institutions are required by law to keep the personal information of their account holders/investor private and most all of the mid to large sized firms use the latest in computer security practices to protect that information and reduce their risk of liability should information get improperly released. As much as you prefer to not give out your SSN to anyone, the law is pushing financial firms in particular to get that information to ensure they'll be in compliance. Taxpayers have been providing their SSNs to financial institutions for decades and I can't recall any episode in this century where there was a major breach disclosing that information improperly.

It pays to be wary of giving up your SSN to someone you know nothing about and only provide it to them if the law absolutely requires it. Major financial institutions are not out to do identity theft or fraud, and since they need to have TIN information to meet their own filing requirements, customers who need their services will need to provide that information. This is not the America of 50 years ago where you very rarely had to provide your SSN to others. But back then there weren't the widespread computer fraud crimes that we have today. The law had to change with the times.

Bottom line is that you can continue your search and hope you can find one that will just take the trust EIN or give the financial the SSN information that it requests. When it comes to a successor trustee, why can't he or she open the new account when he/she takes over as trustee and provide their SSN directly to the financial institution, leaving you out of it?

 

[TrustUser]

You didn't ask a question or explain the situation that motivated your post. Nor does your post appear to raise any legal issue.

that's right, i forgot. this should have been posted in the chat forum. it does not raise a legal issue.