I Provide Trust Services. In this Capacity, I Serve as the Trustee of Trusts Whose Beneficiaries are Individuals. Does the Privacy Rule Apply to my Trust Operations?

Compliance > Privacy
Q. I provide trust services. In this capacity, I serve as the trustee of trusts whose beneficiaries are individuals. Does the Privacy Rule apply to my trust operations?

A. When you act as a trustee, you have a relationship with the trust. Because the trust itself is not an individual, it is not a consumer under the Privacy Rule. Even if the grantor and all the beneficiaries are individuals, neither the grantor nor any of the beneficiaries are your consumers solely because of their relationship to the trust. If, for example, the trust requires you, as trustee, to transfer money to a beneficiary, you provide that financial service to the trust rather than the individual who is the beneficiary. In other words, grantors and beneficiaries of a trust are not your consumers unless they directly obtain a financial product and service from you for their personal, family, or household purposes. Accordingly, you do not have any obligations under the Privacy Rule with respect to the trust. Your duties as a fiduciary, however, may require you to maintain the confidentiality of information about the trust, its grantor, and its beneficiaries.

This can be found in FAQ A.3. of the Regulation P FAQs.  The FAQs can be found at http://www.federalreserve.gov/regulations/cg/faq.pdf.

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