NC Tenant Security Deposit Best Bank?

Question

We recently closed on our first investment property and we keep struggling to find a bank in NC that allows non attorneys to open up a Trust Account or Escrow Account that is similar to an IOLTA. So far the only solution that we have been able to find is with Bank of America and they suggested opening up a Joint Account under our Operating Account and "nicknaming" it TRUST. For some reason, this makes me nervous, even though they claim there will be charges to this Joint "nicknamed" account. I feel like it doesn't comply with the statute. It just seems like they keep thinking I'm talking about a Legal Trust and want me to supply the Trust Certificate, but that is not what this is.

Has anyone worked with a bank in NC that allows a non attorney to open a Trust? If so, which one?

Or am I just asking the bankers the wrong question?

Thanks!

Has anyone worked with a bank in NC that allows a non attorney to open a Trust? If so, which one?

Or am I just asking the bankers the wrong question?

Thanks!

Steve Archer · Answer

You are not asking the wrong question the bankers are just not familiar with the issue. If NC allows you to keep deposits out of state you could use Seacoast Commerce Bank as they specialize in this.

it may not be worth worrying about this too much at this stage in your investing journey. The main reason there are laws requiring trust accounts is because if the bank goes under the trust account will be insured to more than the FDIC limit of 250k. So unless you personally have more than.that I'm this bank it won't be an issue.