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The Listen to Lawrence Letter: Can the trustee write a check to purchase a CD at another bank?

September 1, 2023
August 31, 2023 • Volume 4 Issue 169
Simple answers are the best…read on:

CLIENT QUESTION:

Lawrence Davidow set up an irrevocable trust for me many years ago. About 5 years ago I chose to downsize. My house was sold and a condo was purchased, which is now in the trust. In addition, the remaining money from the sale of the house was put into a checking account in the name of the trust. It is in a commercial bank, receiving practically no interest.  I understand that money can be invested and can receive interest. I would like it to go into a CD at a different bank with higher interest rates. Can the trustee (my daughter) write a check from the account to purchase the CD at another bank, or is there a different mechanism required to move this money?  Thanks so much for your very informative letters and for responding to my query.

MY RESPONSE:

YES! It is that easy!

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