Common use of Informal Trust Account Clause in Contracts

Informal Trust Account. An Informal Trust Account does not require a written trust agreement, and the account is owned by the trustee. The beneficiaries have no right to any funds in the account during the trustee’s lifetime. As the owner of the account, the trustee may withdraw money from the account and may, by written direction to us, change the beneficiary for the account. When the trustee dies, the funds in the account are owned by the named beneficiary or beneficiaries. If the Trust Account is held by more than one trustee, the trustees will be subject to the rules pertaining to joint account ownership. If there is no surviving beneficiary upon the death of the last trustee, state law will determine ownership of the funds in the account. A Formal Trust Account is an account held by one or more trustees for the benefit of one or more beneficiaries according to a written trust agreement. Upon our request, the trustee(s) will provide to us a copy of any trust agreement covering the account. We act only as custodian of the trust funds and are under no obligation to act as a trustee or to inquire as to the powers or duties of the trustee(s). The trustee(s) and/or any person opening the account, in their individual capacity and jointly and severally, agree to indemnify and hold us harmless from and against any and all loss, costs, damage, liability, or exposure, including reasonable attorney’s fees, we may suffer or incur arising out of any action, or claim, by any beneficiary or other trustee with respect to the authority or actions taken by the trustee(s) in handling or dealing with the account. If you have established the account as a custodian for a minor under our state version of the Uniform Transfers to Minors Act, your rights and duties are governed by the Act. You will not be allowed to pledge the account as collateral for any loan to you. Deposits in the account will be held for the exclusive right and benefit of the minor. The custodian and/or any person opening the account, in their individual capacity, agree to indemnify and hold us harmless from and against any and all loss, costs, damage, liability, or exposure, including reasonable attorney’s fees, we may suffer or incur arising out of any action or claim by the minor or other custodian with respect to the authority or actions taken by the custodian in handling or dealing with the account.