Designating a trusted contact

A simple step to protect your financial security

What is a “trusted contact”?

You may have heard the term or even been asked to add one to your financial accounts, but what does it mean? And who should you choose as your trusted contact?

A trusted contact is someone over the age of 18 that you put in place for your financial institution to contact in case of an emergency. They are designated by you to act as a point of contact should something happen, and you cannot be reached. This may be as simple as forgetting to update your contact information after a move or something more serious, such as cognitive decline or concern about financial exploitation. The trusted contact cannot make financial decisions or access your account. They have no authority to view account information or make transactions without a separate authority such as Power of Attorney. Ask your financial institutions about their trusted contact policies and what a trusted contact will be authorized to do.

Is a trusted contact required?

No, trusted contacts are not required. Financial institutions are required to inform clients of the option to add a trusted contact to their accounts. If you would like to add a trusted contact for your account, please contact us to request a form.

In addition to your retirement account, a trusted contact can be added to almost any other account you have. This includes banks, credit unions, and most types of investment accounts. While not every institution is required to offer trusted contacts, most can set it up and provide a written disclosure regarding what information may be shared with your trusted contact.

How do I choose a trusted contact?

Your trusted contact should be someone you know well – a close friend, family member, or other professional like your attorney. They don’t need to know the details of your finances, but they should know your current situation and behavior. It’s important to notify your trusted contact about their role so they are prepared if contacted by your financial institution.

The bottom line

Adding a trusted contact to your account can be just as important as adding a beneficiary. We recommend that you review your trusted contact annually, and update any changes if needed. You can revoke or change your trusted contact at any time. If you need assistance with your Scarborough or other financial accounts, we are here to help.