Trust Examiner School eBook

Internal Use Only

Key Takeaways

There is great variation in types of trust accounts. Examples include court appointed, personal, charitable, and corporate trusts as well as estates, employee benefits, and IRAs. Custodian responsibilities focus on safekeeping and preservation of property by an agent who acts at the direction of a principal’s authority. Employee benefit accounts are subject to ERISA which includes a standards of conduct for plan fiduciaries and trustees. Self-directed IRAs should be reviewed during examinations when they are offered and booked as trust accounts.

Internal Use Only

Key Takeaways Special needs trusts are typically created by a grantor who is a parent or guardian to provide access to funding for someone who is physically or mentally disabled or chronically ill, and to help ensure eligibility for disability benefits (e.g., Social Security, Medicaid).

Stale estates are generally 18 months or older and should prompt some analysis as to why they is taking so long to settle.

Discretionary authority allows the fiduciary to make investment decisions for a client without the client’s consent for each trade. An annual investment review of the account is required given this level of authority.

Unique and hard to value assets must be consistently safeguarded, appropriated valued, and periodically inventoried and audited.