What a trust account is and why you might need one

A trust account is a bank account held in the name of a trust rather than in your personal name. The account itself belongs to the trust — a legal structure that names someone (called a trustee) to manage money or property for the benefit of other people (called beneficiaries). When you open a trust account, you are creating a place for that trust's money to live while the trustee manages it.

People open trust accounts for different reasons. A parent might create a trust account to hold money set aside for a child's education. A business owner might use a trust account to hold client deposits temporarily. Someone planning their estate might set up a trust account as part of their will. The specific reason matters because it affects which type of trust you need and what paperwork the bank will ask for.

The account itself works like any other bank account — you can deposit money, write checks, set up transfers. The difference is that the trustee (not the beneficiary) controls the account and makes decisions about how the money is used. The bank's job is to hold the money and follow the trustee's instructions.

Key Takeaways

  • You need a signed trust document before the bank will open the account — the bank will ask to see it and may keep a copy.
  • The trustee (the person managing the trust) is the one who opens the account and signs the paperwork, not the beneficiary.
  • Different banks have different requirements for trust accounts, so calling ahead to ask what documents they need saves a trip.
  • The bank will ask for the trust's tax identification number (EIN) if the trust has one, or the trustee's Social Security number if it does not.
  • Trust accounts typically cost the same as regular accounts, though some banks charge a small monthly fee for the extra paperwork involved.

What documents you need before you go to the bank

The bank will not open a trust account without seeing the trust document itself. This is usually the trust agreement or declaration of trust — the legal paper that creates the trust and spells out who the trustee is, who the beneficiaries are, and what the trustee is allowed to do with the money. If you created the trust yourself using an online service or template, bring that document. If an attorney drafted it, you should have a signed copy.

Some banks ask for a certified copy of the trust document, which means a notary has verified that the copy matches the original. Not all banks require this, but calling ahead to ask saves you a trip back to get one certified. If the trust was created as part of a will, you may need to bring the will itself or a court document showing that the trust is now active.

You will also need a government-issued ID — a driver's license or passport — to prove you are the trustee. If there are multiple trustees, each one will need to come in and show ID, or the bank may allow one trustee to bring a signed letter from the others authorizing the account opening.

The tax identification number the bank will ask for

Banks need a tax ID to open a trust account. If the trust already has an Employer Identification Number (EIN) — a nine-digit number issued by the IRS — bring that. You can find it on any tax documents the trust has filed, or on the IRS letter that was sent when the EIN was issued.

If the trust does not have an EIN yet, the bank may allow you to use the trustee's Social Security number instead. This is common for small trusts or trusts that do not earn income. However, if the trust will earn interest, dividends, or other income, the IRS expects the trust to have its own EIN. You can request one from the IRS before opening the account (it takes about two weeks by mail) or sometimes the bank can help you explore for one as part of the account-opening process.

Ask the bank whether they prefer an EIN or will accept a Social Security number. This answer varies by bank and by the type of trust.

Steps to open the account at your bank

Start by calling or visiting your bank and asking to speak with someone who handles trust accounts. Not every teller knows the process, and some banks have a specific department for this. Tell them you want to open a trust account and ask what documents they need — this prevents you from arriving with the wrong paperwork.

Bring the trust document, your ID, and the tax ID number. The bank will likely ask you to fill out a signature card, which is a form that shows the trustee's signature and confirms that the trustee has authority to manage the account. If there are multiple trustees, each one signs the card. The bank keeps this on file so they know whose signature to expect on checks and withdrawal requests.

The bank will also ask you to choose the account type — checking, savings, or money market — and whether you want online access. They will explain any fees and the minimum balance required. Once everything is signed, the account is open and you can deposit money when ready. The bank will give you a routing number and account number, which you will need for transfers or direct deposits.

Different types of trusts and what each one needs

A revocable living trust is the most common type opened as a bank account. It is created while you are alive, you can change it or cancel it at any time, and it does not require an EIN if you are the only trustee and the trust does not earn income. The bank will ask to see the trust document and your ID.

An irrevocable trust cannot be changed once it is created, and it almost always needs its own EIN. The bank will ask more questions about the trust's purpose and may ask for a copy of the trust document certified by a notary. This type of trust is less common but requires the same basic documents.

A testamentary trust is created by a will and only becomes active after someone dies. If you are opening an account for a testamentary trust, bring the death certificate, the will, and a court document (called letters testamentary or letters of administration) that proves you have authority to manage the trust. Different banks handle these differently, so call ahead.

A trust account for a business (sometimes called a client trust account or escrow account) holds money that belongs to clients temporarily — a real estate agent might hold earnest money, or a lawyer might hold settlement funds. These accounts have stricter rules and the bank will ask for more documentation about the business and the purpose of the account.

Fees and ongoing requirements

Most banks charge the same monthly fee for a trust account as they do for a regular checking or savings account — often nothing if you keep a minimum balance, or a small fee (usually $5 to $15 per month) if you do not. Some banks charge an extra fee specifically for trust accounts because the paperwork is more complex, but this is not standard.

Once the account is open, the bank will send you statements showing all deposits and withdrawals. You may need to file a tax return for the trust each year, depending on how much income it earns and what type of trust it is. The bank does not file this for you — that is the trustee's responsibility or the responsibility of a tax professional. The bank will provide the information you need (usually on a form called a 1099 or 1098) to file the return.

If the trust document changes or if the trustee changes, you will need to notify the bank. Bring the updated trust document or a court order showing the change, and the bank will update their records.

What happens if the bank refuses to open the account

Some banks decline to open trust accounts because the paperwork is more involved than a regular account. If your bank says no, ask whether they have a trust department or whether they can refer you to another bank that handles trusts. Larger banks and banks that focus on wealth management are more likely to offer trust accounts than small local banks.

If the bank asks for documents you do not have, ask specifically what is missing. If you need a certified copy of the trust document, a notary can do this for a small fee (usually $5 to $15 per page). If you need an EIN and do not have one, you can request one from the IRS online or by mail — the online process is faster and takes a few minutes.

If the trust document itself is unclear or incomplete, an attorney can review it and help you fix it. This costs more than a notary but less than creating a new trust from scratch.

Frequently Asked Questions

Can a beneficiary open a trust account, or does the trustee have to do it?

The trustee must open the account. The beneficiary has no legal authority to manage the trust's money, even if they are the only person who will eventually receive it. The bank will ask for the trustee's ID and signature, not the beneficiary's.

Do I need a lawyer to create a trust before I can open an account?

No. You can create a trust using an online service, a template, or by writing one yourself. The bank only cares that the trust document exists and is signed. However, if you are unsure whether your trust document is valid or complete, an attorney can review it for a flat fee before you take it to the bank.

What if I want to change the trustee after the account is open?

You will need to update the trust document (if the trust allows changes) or provide the bank with a court order showing the new trustee. Bring the updated document to the bank and they will change the signature card and update their records. The account itself does not close — only the person authorized to manage it changes.

Can I have a trust account at more than one bank?

Yes. A single trust can have accounts at multiple banks. Each bank will ask to see the trust document and will keep their own copy. You will manage each account separately, though the money all belongs to the same trust.

How long does it take to open a trust account?

If you have all the documents ready, the account can open the same day. If you need to get an EIN or have the trust document certified, add one to two weeks. Call the bank first to confirm what they need so you can gather everything before you visit.