My question involves a security deposit in the State of North Carolina:
NC State law requires that security deposit must be put into a separate trust account:
Could anyone explain how to set up a trust account? We went to our bank today. At the beginning, the bank specialist told us we have to setup a trust account where landlord is the custodian and tenant is the beneficiary. But later after checking with her manager, she told us that NC no longer requires it and the bank will no longer do the "trust" account anymore.. All we need to set up is a separate personal account with the label of "tenant security deposit account"... We are confused and not sure if this information is accurate.. can anyone confirm/advise?
Basically, my question boils down to "what is a trust account?". Can it be a personal account with the label of "Trust Account"? Or has it to be a special account with custodian (landlord) and beneficiary (tenant) information? My bank refuses to put "Trust Account" in the label (they just labeled "Tenant Security Deposit Account"), but also told me it is should be just a regular bank account (no custodian/beneficiary)
FYI I am not a realtor, am just renting my investment house..