CLIENT ALERT: Is that trust verification letter from your bank a scam? Probably not.
If you have a trust and recently received a letter from your bank asking you to verify information, including sensitive details like Social Security numbers, you’re not alone. We’ve seen a significant uptick in these requests, and while your initial instinct may be to assume it’s a scam, most of these letters are legitimate. Why is this happening now? We’re not entirely sure why banks are suddenly sending these requests, especially since they often come out of the blue, sometimes years after you originally set up your trust and opened accounts in the trust’s name. What we’re hearing from the banks is that they’re conducting large-scale compliance checks on their accounts. While the timing may seem random, these verification requests appear to be part
Common Questions Banks Are Asking (and How to Answer Them) The letters typically request information in categories that can be confusing. Here’s what they’re really asking for: • Grantor/Settlor/Trustor Information: This is asking about YOU: the person (or people) who created the trust. Provide your personal name, address, contact information, etc. • Trustee Information: This section asks who is currently responsible for managing the trust. In most cases, that’s still you, the trust maker(s). If you’re unsure who your current trustees are, give us a call. • Beneficiary Information: This asks who the current beneficiaries of the trust are. Unless you have a specific type of irrevocable trust, that’s still you, the trust maker(s). • Trust Type: They want to know if your trust is revocable or irrevocable. Answer based on the type of trust you have (most of our clients have revocable living trusts). • SSN/EIN/Tax ID for the Trust: Your revocable living trust uses YOUR Social Security number as its tax ID. If it’s a joint trust for married couples, you may need to provide both spouses’ SSNs.
of routine internal audits. What should you do?
We recommend taking these steps to protect yourself while complying with the bank’s request: 1. Don’t call the number on the letter right away. Instead, use a number you know is legitimate, like the one on the back of your debit or credit card, to contact your bank and verify the request. 2. Don’t go to a branch in person. Bank staff at local branches typically can’t help with trust account matters and will just direct you to call the number on the letter anyway. 3. Once you’ve confirmed it’s legitimate, provide the information as requested. These verification requests are often compliance- related and important to complete.
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