Can a bank be a co-trustee?

Can a bank be a co-trustee?

There are many options for appointing a trustee of a trust, including having a bank act as a trustee. A bank can work on its own or alongside another individual, i.e., a co-trustee.

What are the responsibilities of a co-trustee?

Co-Trustee Responsibilities:

• Management of trust assets. This may include the opening and closing of bank accounts, investment of trust funds in stocks or other assets, and buying and selling of property.
• Filing all necessary tax returns.
• Distribution of assets to the beneficiaries.
• Cooperation with co-trustees.

  Can a family member act as a co-trustee?

  A trust (and other legal documents such as a Power of Attorney), may allow successor co-trustees to act in concert and exercise their powers jointly, or it may be written to allow either co-trustee to act independently. Family members may be excellent candidates to serve as co-trustees or successor trustees when a Grantor is alive.

  Why does a bank not recognize a co-trustee?

  Instead, they require that the document designating co-trustees provide that each of the co-trustees may act independently of each other, because the bank does not want to be in the position of having to police the actions of the trustees; rather, the bank, for its own protection, wants to be able to honor any action taken by either trustee.

  What’s the best way to avoid co trustee problems?

  Another way to avoid common co-trustee problems is to name a trust administrating institution, such as a professional trust company, a trust department of a bank, or a law firm, as the trustee, with children or other beneficiaries as Trust Protectors who can remove and replace the professional trustee at any time.

  Are there problems when siblings act as co-trustees?

  On the face of it, yes. But as an experienced estate planning attorney I invariably find myself cautioning these parents. Problems almost certainly will arise whenever siblings act as co-trustees. The challenges begin with hassles such as having to co-sign bank, mortgage and escrow documents relating to the trust.

  A trust (and other legal documents such as a Power of Attorney), may allow successor co-trustees to act in concert and exercise their powers jointly, or it may be written to allow either co-trustee to act independently. Family members may be excellent candidates to serve as co-trustees or successor trustees when a Grantor is alive.

  Instead, they require that the document designating co-trustees provide that each of the co-trustees may act independently of each other, because the bank does not want to be in the position of having to police the actions of the trustees; rather, the bank, for its own protection, wants to be able to honor any action taken by either trustee.

  Another way to avoid common co-trustee problems is to name a trust administrating institution, such as a professional trust company, a trust department of a bank, or a law firm, as the trustee, with children or other beneficiaries as Trust Protectors who can remove and replace the professional trustee at any time.

  Can a bank be the trustee of a trust?

  Transfer the trust property to the bank. The trustee holds the legal title of all the assets in the trust, for the trust’s benefit. Property law and the process for transferring property between parties, varies by state. Check your state’s laws for the proper process for transferring assets into the trust.