The term “fiduciary banking” may not be a household phrase, however, it plays a pivotal role in ensuring that the financial affairs of individuals, trusts, and estates are handled with precision, security, and legality. In a recent interview, we had the privilege of discussing this fascinating topic with Ronna Lubash, an industry expert with over 35 years of banking experience. In this article, we’ll delve into the insights and wisdom shared by Ronna during the interview, shedding light on the significance of fiduciary banking in the world of estate management.
What Is Fiduciary Banking?
Key Takeaways:
- Fiduciary banking is a niche within the banking industry that specializes in managing financial assets on behalf of individuals, trusts, and estates.
- It involves handling funds and assets in a highly regulated and cautious manner, ensuring compliance with legal requirements.
- Manufacturers Bank, where Ronna Lubash works, excels in fiduciary banking, distinguishing itself by being comfortable with various legal documents.
Fiduciary banking, as explained by Ronna Lubash, is a specialized field within the banking industry that focuses on managing finances for individuals acting on behalf of someone else. Whether it’s professional fiduciaries, successor trustees, or administrators, fiduciary banking steps in when people need to handle money or assets that aren’t technically theirs. Here are some key insights about fiduciary banking:
- Expertise in Legal Documents: Manufacturers Bank, where Ronna works, is well-versed in handling a variety of legal documents, including special needs trusts, probate administration, and successor trustee arrangements. Unlike some mainstream banks that may struggle to navigate these complexities, fiduciary banks are comfortable with such financial intricacies.
- Security and Compliance: Acting as a fiduciary requires extreme caution and adherence to legal requirements. Fiduciary banks ensure that accounts are FDIC insured, and they even have the capacity to provide insurance up to $150 million. This meticulous approach safeguards the interests of beneficiaries, trustees, and administrators.
- Two Signatures Requirement: In many fiduciary situations, legal documents stipulate that two parties must act together. Fiduciary banks can set up accounts with the requirement of two signatures for added security, a feature that mainstream banks often lack.
The Need for Fiduciary Banking
Key Takeaways:
- Fiduciary banking is essential when managing assets that belong to someone else, requiring utmost precaution and compliance with legal standards.
- Professional fiduciaries, successor trustees, and administrators often find themselves in unfamiliar territory when dealing with significant sums of money, making guidance from experts like Ronna crucial.
The critical question that arises is: Why is fiduciary banking necessary? The distinction becomes evident when managing assets that don’t technically belong to you but to someone else. Whether you’re a professional fiduciary, a successor trustee, or an administrator, fiduciary banking ensures that you handle these assets with the utmost care. Here’s why fiduciary banking is essential:
- Protecting Beneficiaries: Fiduciary banking safeguards the interests of beneficiaries. It ensures that assets are managed diligently, responsibly, and in compliance with legal standards. In scenarios where several beneficiaries are involved, this protection becomes paramount.
- Guidance for Inexperienced Trustees: Many individuals who assume fiduciary roles are not experts in financial management. They might be the children of the deceased or individuals new to the role. Fiduciary banks, like Manufacturers Bank, offer guidance to navigate the complexities of asset collection, liquidation, and distribution.
- Avoiding Legal Pitfalls: Legal documents often come with specific requirements. Fiduciary banks ensure that these requirements are met, reducing the risk of legal complications down the road.
Finding the Right Fiduciary Banking Partner
Key Takeaways:
- Fiduciary banking partners, like Manufacturers Bank, are often sought through referrals from estate planning attorneys, realtors, or networking groups.
- Establishing a strong relationship with a fiduciary banking partner can simplify the estate management process and ensure the highest level of care for assets.
When it comes to selecting a fiduciary banking partner, individuals, trustees, or administrators often rely on referrals from trusted sources. Estate planning attorneys, realtors, and networking groups are common channels through which fiduciary banks like Manufacturers Bank connect with clients. Building a robust relationship with a fiduciary banking partner can be instrumental in simplifying the estate management process and ensuring assets are handled with the utmost care.
Ronna Lubash: A Banking Journey
Key Takeaways:
- Ronna Lubash’s banking journey spans over 35 years, with extensive experience in major banking institutions.
- She started her career at Security Pacific Bank, moved to Union Bank, and eventually found her way to Manufacturers Bank, where she specializes in fiduciary banking.
- Ronna’s dedication to continued learning and networking has solidified her expertise in the field.
Ronna Lubash’s impressive banking journey, stretching over three decades, reflects her commitment to the industry and her expertise in fiduciary banking. Her career began at Security Pacific Bank, where she underwent comprehensive training in various aspects of banking. She subsequently spent 25 years at Union Bank, working in the private banking sector, before joining Manufacturers Bank. Ronna’s journey reflects the importance of continuous learning and networking in building expertise within the fiduciary banking domain.
️Notable Quotes:
“When two signatures are required in an account, we set it up to post credits only. Anyone can deposit at anytime, wires coming in, deposits go through, but every cheque that’s written requires two signatures to clear.”
Connecting with Ronna:
LinkedIn: https://www.linkedin.com/in/ronna-lubash-53735264/ Website: https://www.manufacturersbank.com/Ronna-Lubash
Full Episode
DISCLAIMER: The Probate Realtor® Matias Baker Masucci is a licensed real estate broker in California DRE # 02054763. Any legal information provided is for informational purposes only and NOT for the purpose of providing legal advice. Contact an attorney to obtain advice with respect to any particular legal issue or problem. We make no guarantees as to the accuracy of any information.
