Is it okay to have banks as trustees of trusts?

Answer by  sam76 (34)

It is acceptable for banks to be trustees of trusts. The bank will be able to manage a trust because of the large amount of liquidity that they possess, which can be used to prevent any potential crises from occurring. They can also secure large amounts of money against the trust.

Answer by  Travis404607 (3916)

This usually depends on the bank. Normally, it is safer to have an attorney or trusted family member as the trustee of a trust, since they are separate from the bank.

Answer by  junebug0720 (270)

If you don't have a family member you can entrust than you can use the bank. Banks are insured and well regulated on the latest laws. With a bank controlling your trust they can file the proper paperwork with the IRS whereas a family member may forget.

Answer by  JoseRoel (6)

Banks are great as trustees of trusts and money in general- they allow you to receive interest on your deposits and are generally the safest investment a person can make. Other trustees could be stocks or bonds, both of which have a higher risk, but a greater return in cash; just don't NOT deposit it somewhere.

Answer by  tamarawilhite (17883)

This works well if the trust is small and no relatives are willing or able or trusted to manage the trust.

Answer by  jojang (27)

It is not a good idea to let bank be the trustees of trusts because this is not they major business line. Plus, some conflict of interest issues may happen.