Need to Open a Trust Bank Account? Consider These Tips.

If you are currently in the process of administering a trust, one of your earliest tasks is to take control over the trust assets. Typically, this involves either opening or updating a bank account in the name of the trust. The bank where this account is held is within your discretion as the successor trustee of the trust. It is important to weigh your options before taking action.

Four Tips for Choosing the Right Bank

Now that you are ready to choose a bank, consider the following tips:

  1. Location, location, location. Remember that as trustee, you are in charge of managing this account. This may involve frequent visits to the institution. As such, consider carefully where the bank’s branches are located. You may not want to choose a bank that is far away from your home in Anaheim, difficult to get to, or in an area that frequently experiences heavy traffic.
  2. Proper insurance. Ensure that the Federal Deposit Insurance Corporation (FDIC) insures the bank. This is not likely to be an issue if you are dealing with any of the larger institutions. However, if you are working with a small operation, be sure to verify that this insurance is in place.
  3. Convenience. Is there already a trust bank account in existence? If so, it may be easiest to stay with the same bank. Updating the account to reflect the change in trustees is not a difficult task. If you transfer the account to a different institution, the process will be more involved.
  4. Customer service. When it comes to a trust administration, this is a very important factor. Some banks are more familiar with working with trusts than others. In addition, the employees at some banks are more friendly and easy to deal with at certain institutions. You do not want to be working with individuals who are not used to handling trust administrations—this can create many delays and roadblocks as you try to carry out even basic tasks.

Did you find these tips helpful? If so, we encourage you to sign up for our free newsletter, which will provide you with access to even more information that can help you administer a trust.

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