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Authorized Signer Not Listed in Trust Document

Question: 
Can a Trustee or Successor Trustee designate an authorized signer on the trust's banking accounts who is not listed in the trust document?
Answer: 

Generally, the answer to this question is no, they can not. When the Grantor created the trust s/he named a successor trustee to act in the event the trustee is no longer able to act. Many times there will be several levels of successor trustee to ensure that someone authorized by the Grantor is available to act. To have the trustee appoint an authorized signer runs counter of the trustee's fiduciary duty in regards to the trust and would allow someone not considered suitable by the Grantor when they created the trust to have access to and control over the trust assets.

However, state laws do differ, so it is best to check your state law. In some instances if the Trust Agreement has appropriate language the trustee may be able to appoint an attorney-in-fact to act on their behalf in their fiduciary capacity on the trust as long as the corresponding power of attorney also contains the appropriate language.

First published on BankersOnline.com 6/24/13

First published on 06/24/2013

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