Account Authorizations: Trusts, Corporations, and Other Entities
Chapters in this video
- 0:00 Trust tax IDs: revocable SSN vs irrevocable EIN
- 1:36 Certificate of trust as privacy-saving substitute
- 2:02 Corporate resolutions and the margin-options trap
- 2:51 CDD Rule: the 25% beneficial ownership threshold
- 3:15 Partnership death freeze and reconstitution rules
- 3:53 Unincorporated associations vs corporate resolutions
- 5:07 Rapid-fire exam recap
What this video covers
- Why a revocable trust generally uses the grantor's Social Security Number (SSN) while an irrevocable trust must have its own Employer Identification Number (EIN)
- How a certificate of trust substitutes for the full trust agreement to verify trustee authority without exposing private trust terms
- Why corporate margin and options accounts require explicit authorization in both the corporate charter and the corporate resolution, and why a general cash-account resolution fails
- What the Financial Crimes Enforcement Network's Customer Due Diligence (CDD) Rule demands: beneficial owners at 25% or greater ownership plus one designated control person
- What happens to a partnership account when a general partner dies: immediate freeze until legal reconstitution or dissolution
- Why an investment club, as an unincorporated association, needs organizational documents and an authorized signer list instead of a corporate resolution
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