Trust exceptions occur when a trust agreement, beneficiary information, asset listing, correspondence, or other trust-related documentation is missing from the file. Depending on the financial institution, past due tasks—such as scheduling an annual review or paying an invoice—may also be considered exceptions. However, missing documentation is usually the most common type of trust exception.
Tracking Trust Exceptions
Financial institutions rely on a variety of solutions to track trust exceptions. Common examples include checklists, spreadsheets, ticklers, and trust core-integrated software like AccuAccount. Regardless of the approach, trust departments should implement processes for efficiently monitoring:
What should be in the trust file - There are many different types of trusts, which means that one trust file’s contents may be considerably different from another.
What is missing - Identifying documentation gaps is a key step for keeping exceptions to a minimum.
When it’s due - Tracking exception due dates and aging helps trust teams prioritize follow-up activities.
Who should take action - Reporting on trust exception data by trust officer and other criteria increases accountability to avoid documentation oversights.
Resolving Trust Exceptions
Trust exceptions vary based on the financial institution and trust type. Resolving a trust-related exception may involve:
- Paying an invoice that was past due
- Obtaining a missing power of attorney document
- Collecting updated tax return documents from a client
- Saving payment receipts into a digital archive
Simply completing an action may not actually “clear” the exception from the financial institution’s tracking database. For example, if a financial institution tracks trust exceptions in a spreadsheet, the trust officer would need to complete the action (i.e., scanning in the missing document) and also remember to update the tracking spreadsheet.
Continue reading about exception management and trust imaging. Learn about AccuAccount, Alogent’s document management solution for trusts, loans, and more. Clear exceptions by scanning in missing trust documents, simplify reporting, and empower trust departments.
