Do you know that a trust is a separate legal entity from the grantor and
trustee? Many individuals treat trust property like their own property – which
is not correct. The trust is a separate legal entity, even if it uses the
grantor’s Social Security number. Opening a deposit account for, or lending to,
a trust is completely different from providing those services to an individual.
A loan may not be valid against the trust, and your institution could be held
liable for the funds in the account if a mistake is made.
This webinar will
explain the proper documentation and information that must be obtained before
opening accounts for trusts, including determining who is authorized to transact
business. It will also clarify the necessary loan documents you must obtain and
everything else that must be understood before lending to trusts, including
determining whether the trust has the power to borrow money and/or pledge trust
- Differences between living trusts, grantor trusts,
family trusts, revocable trusts, testamentary trusts, and business trusts
Who are the parties in a trust and what actions are they authorized to take?
- Should you require the entire trust agreement or only a certification of
- If the trust agreement authorizes the trust to borrow money, can
the trust guarantee a beneficiary’s loan?
- If there are multiple trustees,
must all trustees sign, or can only one trustee sign on behalf of the trust?
- When can an individual’s Social Security number be used for the trust?
Elizabeth Fast, JD, CPA, Spencer Fane LLP
Live and recorded webinar, handouts, quiz with answer key and training log are included.