Trusts are an important part of estate planning and typically allow parties to protect their property and provide for their loved ones while also avoiding the significant tax penalties associated with other means of passing on assets. There are certain measures people should take to safeguard their trusts, like obtaining a medallion signature guarantee. If you have questions regarding trusts and other estate planning tools that could help you protect your interests, it is advisable to contact a California estate planning attorney to evaluate your options.
The Need for Medallion Signature Guarantees in Trust Accounts
A medallion signature guarantee is a type of certification used to protect certain assets and accounts from fraudulent transactions. Generally, it combines the signature of a bank officer with a unique stamp and barcode and a compound with invisible ink to ensure that the transfer of securities, like bonds and stocks, is valid. While many financial institutions offer other types of certifications, a medallion signature guarantee offers a higher level of protection.
Medallion signature guarantees provide peace of mind that a person’s identity is confirmed, their signature is valid, and they are the legal owner of the property they are trying to transfer. When a transaction occurs with a medallion signature guarantee, the institution will assume liability if it is revealed that forgery has occurred. Medallion signature guarantees focus on the financial institution allowing the transaction, rather than the party making the transfer, and essentially provides a promise that the financial institution will reimburse any victims of fraudulent transfers. Continue Reading ›