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

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!

And, if anyone you know would like to

receive this Listen to Lawrence Letter just

tell them to send their email address to info@davidowlaw.com and I’ll add them to the list!

As always, please send your questions in! If you are thinking about it, others are probably too, so my answers will no doubt help you and many others.

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