Definition

Grantor trusts are accounts where the assets are owned by the grantor. Grantor trusts are also known as trusts under agreement, family trusts, and living trusts. The IRS terms them as grantor trusts since the assets in the trust are still owned by the grantor, the person establishing the trust. 

The grantor is the person who establishes and owns the trust. The trustee manages the assets and carries out the wishes of the trust. The trustee is the authorized signer on the account. Often the grantor and trustee are one in the same. 

The purposes of the trust are to:

• Implement an estate plan
• Avoid the probate process
• Possibly reduce federal estate taxes

The Co-Trustee Acknowledgement Form is required for trusts with 2 or more trustees. This form acknowledges that the co-trustees are aware the account indicates any one of the authorized trustees may write checks or withdraw money from the account.

Required Documentation to Open Account

ALL legal documents for revocable (grantor) trust accounts MUST be reviewed by Call Me Direct (CMD) for approval before proceeding with opening or revising an account.

1. Scan and email all documents to _Call Me Direct to review.
2. Call Me Direct reviews the documents and takes one of the following actions:
   • Approves the account opening or change
     • If the documents are approved, CMD completes a Document Review Coversheet and emails the associate opening/revising the account.  
     • The Document Review Coversheet from CMD MUST be imaged with account documents. 
   • Denies the account opening or change

Obtain the following trust documents from the client:

• One of the following:
  • Copy of the complete trust or certificate of trust document
  • Copy of the page naming the trust (title of the trust)
• Page or pages listing the trustees and successor trustees
• Pages with the signatures and notarization

For trusts with 2 or more trustees, obtain the following document:

• The Co-Trustee Acknowledgement Form acknowledges that the co-trustees are aware the account will indicate any one of the authorized trustees may write checks or withdraw money from the account.

Tax Identification Number (TIN)

Grantor trusts can use the grantor’s social security number (SSN) or a trust tax identification number (TIN) for IRS reporting.

Account Titling

1. Title the account in the name of the trust. The trustee’s name(s) must also be listed in the account title. {Client's name} TRUST displays in the Customer Name field.
2. In the Additional Name 1 field enter the name of the authorized signer (for example:  {name of Authorized Signer} Trustee(s)). 
3. Check to see if the TIN specified in the account belongs to the trust. If it does not, do not open the account.  

Ownership Requirements

Note: Successor trustees sign only in the event they assume the role of trustee.

• Trustees are the only signers on the signature card 
• Signature card with the trustees' signatures above their names in the Signatures section  
• Trustee verification of the information in the Backup Withholding Certifications section, certifying the SSN/TIN of the trust

Signature Card Examples