When it comes to naming someone you trust, the list can get pretty short, pretty quick.
Most of us would agree that a trustworthy person has integrity, honesty, and reliability—and a history of actions to support those words.
Individuals have the opportunity to name someone they trust on their financial accounts. A trust contact person (TCP) is someone that your financial institution can contact if you’re unavailable. However, only about 40% of investors have told their financial companies which person they should contact if they are unable to reach you in an emergency.1,2
We encourage everyone to consider naming a TCP.
Pro Tip: How many trusted contacts should you add to your financial accounts? It can depend on the institution, but most allow you to name 1–2 for efficiency. Let’s discuss the pros and cons of how many to name, especially if you’re concerned about the duties your TCP might be asked to perform.
June 15 is World Elder Abuse Awareness Day. Among other ideas, it’s a day to help address some of the personal financial challenges and difficulties faced by elders as they navigate an increasingly complex world. It’s also a good time to ask the question, “Have you named a trusted contact for your accounts?”
There are a variety of scenarios in which a TCP may be asked to relay a critical message for you. For example, say you’re traveling to a place that has limited Wi-Fi reception or cell phone service. A TCP can speak to the financial institution on your behalf.2
A trusted contact can help in other situations, too. What if the financial institution suspects fraud or unusual activity on your account and you’re out of reach? They can connect with your TCP to help address urgent red-flag issues.2
The financial institution will need to know your TCP’s phone number and physical address. An email address is helpful, but it may not be required. In most circumstances, a TCP must be over age 18, and the financial institution will want to know their relationship to you.
“Trust in the Lord with all your heart, and lean not on your own understanding; in all your ways acknowledge Him, and He will make your paths straight.” – Proverbs 3: 5-6
Don’t confuse a trusted contact with a financial Power of Attorney (POA), who is someone you authorize to make financial decisions if you are unable to do so yourself. A financial POA is someone who can take over managing your finances or paying your bills.
If you’re ready to add a trust contact to your financial accounts, we encourage some prayer, thought, and reflection before making any selections. We want you to be comfortable with your decision.
Everplans Can Help
We introduced Everplans to our clients several years ago to help manage estate issues, as well as other types of financial preparations.
One of the features of Everplans is permission-based viewing, which allows the owner to tailor access to only certain individuals. So, you can determine “who can view what” with your personal finances. Your TCP can be given permission to see whatever critical information you think is appropriate.
We would be happy to send you an invitation to Everplans. If you’re not ready to start with Everplans, we have other tools that you can use.
- JanusHenderson.com, October 31, 2024
FINRA.org, 2024
