[WSBAPT] Co-signer on trust bank account

[Philip N. Jones]

Down here in Oregon, the Uniform Trust Code allows some delegation of some duties of trustees.  One problem presented by this statute is that some banks and brokerage houses continue to believe in the old rule that fiduciaries could not delegate their duties.  As a result, some institutions do not honor powers of attorney signed by trustees.  And it will probably be difficult to convince them otherwise.
Phil Jones
Portland OR

Philip N. Jones
Duffy Kekel LLP
900 S.W. Fifth Ave. Suite 2500
Portland, OR 97204
pjones at duffykekel.com<mailto:pjones at duffykekel.com>
(503) 226-1371 - office
(503) 853-1482 - cell
(503) 226-3574 - fax

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Jennifer Johnson
Sent: Tuesday, May 17, 2022 9:07 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Co-signer on trust bank account

Good morning all,

Clients are trustees of a revocable trust that has checking accounts at a local credit union.  They want to add their daughter (not a trustee) as a co-signer on the accounts so she can pay bills when they are away.  Their trust agreement does not prohibit this.

Credit union said no, she has to be a trustee in order to be a co-signer.  They don't want her to be a trustee.  We drafted a limited power of attorney just for this purpose, and the bank said they would keep it on file but that there was no guarantee that it would be honored.  This made clients nervous (they are deeply mistrustful of financial institutions) and even more sure that they want her to be a co-signer.

I haven't had a chance to speak with anyone at the credit union to see what we can work out, but I'm wondering if this is generally a bank policy that there isn't a way around?  Has anyone included specific language in their trust agreements that convinces banks to accept a non-trustee signer on a trust account?

I appreciate any insight you all may have.

Thank you, Jennifer

Jennifer M. Johnson
Title Officer | Attorney
Wahkiakum Title & Escrow Co.
Hanigan Law Office, PS
68 Main Street / P.O. Box 39
Cathlamet, WA 98612
(360) 795-3494
(360) 795-3001 (f)
www.wahtitle.com<http://www.wahtitle.com>

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