QUESTION
Is there a simple trust form we can use to open a bank account and how?
Asked on Sep 16th, 2015 on Estate Planning - Michigan
More details to this question:
My son's grandfather (my wife's father) left him a small amount of money to be placed in a trust, with his Mom as the trustee, until he is 25. When we went to the bank, they told us they require a trust agreement to open the account.
9 ANSWERS
Probate Attorney serving St. Louis, MO
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Edward L. Armstrong, P.C.
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I've worked in the past for several trust companies and trust departments - their lawyers are great but in the regular banking area the training most bank personnel get is inadequate so they are taught to give answers that will not cause the bank any liability. If you talk to a regular banker about the best they can do is a type of co-account with the minor or, perhaps, a gift to minors account but that makes the parent the donor. If your son's grandparent intended a trust be prepared that could be rather expensive depending on the amount involved. The custodial type of account is easy but has its limitations as the parent, as custodian, may have to report earnings on the account as income to himself or herself rather than to the child who is, of course, a minor.
Answered on Sep 17th, 2015 at 2:09 PM
Wills and Estate Planning Attorney serving Sugar Land, TX
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Law Offices of Kimberly D. Moss, PLLC
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The trust that your wife's father used to establish the trust would need to be retrieved and presented to the bank for your wife to be able to act in her representative capacity as trustee. If you know the name of the attorney that your wife used to establish the trust, he or she may have copies of the trust agreement. Otherwise, you will need to find out where your wife's father placed his important documents and look for that agreement.
Answered on Sep 16th, 2015 at 2:07 PM
Probate Attorney serving Newport, OR
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Minor, Bandonis & Haggerty P.C.
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Grandfather created the trust, so he must have created the trust agreement. If he just gave the money to you or your son with instructions that it be held in trust, then I'd recommend using a Uniform Transfers to Minors Act (UTMA) account. Much simpler. If it actually was given in trust, then there must be a trust agreement otherwise, how would the trustee know what to do with it?
Answered on Sep 16th, 2015 at 1:49 PM
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If your son is under 18, you can simply open it as a UGMA or UTMA account, both remain in trust until 25. If he is over 18 then a trust document will be necessary. This is opinion is solely based upon the facts presented in the inquiry. Additional facts may be important and may change the analysis. If you are uncertain, seek legal counsel. We are not your attorneys. This answer is being offered to assist you in determining if you need to retain legal counsel to assist you, not to resolve your issue through an email inquiry.
Answered on Sep 16th, 2015 at 1:31 PM
Most trusts are individually written because the circumstances vary from case to case. You might be able to purchase a generic trust document on-line but check carefully to see if it conforms with the laws of your state. An attorney can also draw up a simple trust. If the executor/personal representative of the estate is working with an attorney, he or she might be able to help you with this.
Answered on Sep 16th, 2015 at 1:14 PM
Corporate/Business Attorney serving Beachwood, OH
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Christine Sabio Socrates Attorney at Law
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It what type of document (trust or will) set up a trust or made reference to a trust for the grandchild? There should have been a trust already set up or a testamentary trust within a will set up for the child. If not, and if the will states that one must be set up, then I would consult with an estate planning attorney to do so. You need to make sure that it is in compliance with the bank's requirements and it will be easier to do so if you work with an attorney.
Answered on Sep 16th, 2015 at 1:12 PM
No, this must be done by deceased before death.
Answered on Sep 16th, 2015 at 12:55 PM
Probate Attorney serving Palatine, IL
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Law Offices of Robert H. Glorch
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When you say he left him money "to be placed in a trust until he is 25" what is that based on that? That itself sounds like the trust. Is there no writing at all evidencing that this is how he left the money? Are these terms on the will, or some separate documents? Wherever those instructions are found that IS the trust. Work with an attorney.
Answered on Sep 16th, 2015 at 12:52 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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The bank is correct, and if there was no trust in place at the time of the request, a conforming trust would have to be drafted and provided to the bank before it can open an account in the trust name.
Answered on Sep 16th, 2015 at 12:51 PM