Featured Savings Rates
Featured Accounts

Trust Account

rwik16
rwik16   |     |   2 posts since 2010

I would like to know if you can also post a column if an account or CD can be held in a trust account? Right now that is not listed and I have to go to the individual bank website or call them to find out. Thank you for considering this additional criteria.




Ally6770
Ally6770   |     |   1,974 posts since 2010
Ken Tumin
Ken Tumin   |     |   5,771 posts since 2009
I noticed ING Direct allows customers to open Living Trust Accounts. They are described here. Are these the types of Trust Accounts that you are referring to? Do you have examples from other banks? Thanks.
Ken Tumin
Ken Tumin   |     |   5,771 posts since 2009
I noticed ING Direct allows customers to open Living Trust Accounts. They are described here. Are these the types of Trust Accounts that you are referring to? Do you have examples from other banks? Thanks.
Ally6770
Ally6770   |     |   1,974 posts since 2010
I used to work at a bank. You can put the CD into the trust. The CD had to be titled as the trust is titled with the date the trust was executed.

I am not sure putting a CD into a trust is wise in all cases. The FDIC insurance is a little different. I believe you can have more insurance outside the trust unless laws have changed. Speak with the bank, or better yet call FDIC or go to the site.

In the bank where I worked if the owner died the beneficiaries would present a death certificate  and cashier checks would be typed up to the beneficiaries immediately. If one of the co-owners died a new owner could be added without breaking the CD so you could have the same FDIC insurance or if the owner wanted the CD could be cashed out without a  penalty. Things may have changed.

 
rwik16
rwik16   |     |   2 posts since 2010
To Ken,

 

For example I had to go to the Incredible Bank website to find my answer to the trust account question. This was in their FAQ section. It would be easier when you post the deals if it had already told me this.

 

Does Incrediblebank.com offer trust or custodial accounts?
At this time, Incrediblebank.com does not offer these accounts.
Ally6770
Ally6770   |     |   1,974 posts since 2010
Any bank can do a trust account.

Are you sure they did not mean that they did not manage trust accounts. Usually only the larger banks have their own trust department. Anyone can have a formal or an informal trust. ITF just means in trust for and is not a formal trust. A formal trust is one that have done thru a lawyer. If you have this the CD would be titled "XXX XXX as trustee of the trust of XXX XXX dated 00-00-0000. An informal trust would only mean that you are leaving the money to the beneficiaries. The third kind is where you do not manage a formal trust and turn it over to the trust department and for a management fee they will invest the funds.