What a trust account is and why banks treat it differently
A trust account is a bank account held in the name of a trust rather than in your personal name. The account belongs to the trust itself, and whoever you name as trustee controls it. Banks require different paperwork and verification for trust accounts than they do for personal accounts because the money is legally held for beneficiaries, not for the account holder's personal use.
The most common reason to open a trust account is to fund a revocable living trust — a legal document that lets you control your assets during your lifetime and directs where they go after you die, without going through probate. Some people also open trust accounts for irrevocable trusts, charitable trusts, or to hold assets for a minor. The bank's job is to confirm that the trust exists, that the person opening the account has authority to do so, and that the account is being opened for a legitimate trust purpose.
The process is straightforward if you have the right documents, but it takes longer than opening a personal account because the bank must verify the trust's legal status. Most banks complete the process in one to two weeks, though some require an in-person visit.
Key Takeaways
- You will need a certified copy of your trust document or a trust certification letter from your attorney, plus government-issued ID for the trustee.
- The account is opened in the trust's name, not your personal name, and the trustee is the person authorized to make deposits and withdrawals.
- Banks verify the trust's legal existence and the trustee's authority before opening the account, which typically takes one to two weeks.
- Some banks charge monthly fees for trust accounts, while others waive fees if you maintain a minimum balance or link the account to other services.
- You will need to provide the bank with the trust's Employer Identification Number (EIN) if the trust has one, or your Social Security number if it does not.
Documents you need before you visit the bank
The bank will ask for proof that the trust legally exists and that you have the authority to open an account on its behalf. The standard document is a certified copy of the trust — a photocopy of the full trust document, certified by a notary public or your attorney. Some banks accept a trust certification letter instead, which is a shorter document signed by your attorney stating that the trust exists, is valid, and that you are the trustee. A certification letter is faster to obtain if your attorney has one on file.
You will also need a government-issued photo ID for the trustee — a driver's license, passport, or state ID. If the trustee is not the person who created the trust, bring documentation showing how the trustee was appointed, such as a successor trustee clause from the trust document itself.
If the trust has an Employer Identification Number (EIN) — a tax ID issued by the IRS — bring that. If the trust does not have an EIN yet, you can provide your Social Security number instead. The bank will ask which one to use when you open the account. Revocable living trusts often use the grantor's Social Security number rather than obtaining a separate EIN, though some banks prefer an EIN for clarity.
The step-by-step process at the bank
Call the bank ahead of time and ask to speak with someone in the new accounts department. Tell them you want to open a trust account and ask whether they require an in-person visit or whether you can do it by mail or video. Some banks, particularly larger ones, can handle trust accounts entirely by mail or online; others require you to appear in person with your ID and documents.
When you arrive or submit your process, the bank will ask you to complete a new account form. On this form, the account name will read something like "Smith Family Trust, dated January 15, 2020, by John Smith, Trustee" — the exact format varies by bank. The bank will ask for the trust's tax ID (EIN or Social Security number), the trustee's full name and address, and the names of any successor trustees or co-trustees.
The bank will then review your certified trust document or certification letter to confirm that the trust is real and that you have the authority to open the account. This verification step usually takes three to five business days. Once the bank confirms the trust, it will send you account details — your account number, routing number, and information about online banking access. Some banks mail these materials; others provide them when ready if you opened the account in person.
What happens with the trust's tax identification
If your trust does not yet have an EIN and the bank requires one, you will need to obtain it before the account can be fully activated. You can request an EIN from the IRS online at irs.gov, by phone, or by mail using Form SS-4. The online process takes minutes and you receive the EIN when ready. By phone, you can get one the same day. By mail, it takes about four weeks.
If you use your Social Security number instead, the bank will report the account to the IRS under your name, not the trust's name. This is common for revocable living trusts because the grantor (the person who created the trust) is still responsible for the trust's income taxes during their lifetime. Irrevocable trusts, by contrast, usually need their own EIN because they file separate tax returns.
Ask the bank which approach they recommend for your situation. If you are unsure whether your trust needs an EIN, your attorney or a tax professional can advise you. The bank cannot tell you which is correct for your trust type, but they can tell you what they require to open the account.
Fees and account features for trust accounts
Trust accounts often carry higher monthly fees than personal accounts — typically $10 to $25 per month — because banks incur extra costs verifying the trust and maintaining the account. Some banks waive the fee if you maintain a minimum balance, which ranges from $2,500 to $25,000 depending on the bank. Others waive it if you link the trust account to a personal checking or savings account at the same bank.
Most trust accounts come with a debit card and online banking access, though some banks restrict these features for irrevocable trusts. Ask the bank what features are included and whether there are any restrictions on who can access the account online. If you have co-trustees, confirm whether both can log in and make transactions, or whether only the primary trustee can.
Interest rates on trust savings accounts are the same as on personal savings accounts at that bank. Trust money market accounts and CDs work the same way too — the trust status does not affect the rate you earn, only the fees you pay and the verification required to open it.
After the account opens: what you need to do
Once the account is open, the trust owns it. You, as trustee, control it on the trust's behalf. When you make deposits, write checks, or transfer money, you are acting as trustee, not as yourself personally. For this reason, checks should be written to the trust's name, not your personal name, and deposits should be made in the trust's name.
If you are the grantor (the person who created the trust) and also the trustee, you can deposit your own money into the trust account. This is called funding the trust — transferring assets into the trust's name so they are controlled by the trust and will pass to your beneficiaries according to the trust's terms. Many people open a trust account specifically to fund their trust with cash or to hold money for beneficiaries.
Keep records of all transactions in the trust account. If the trust is irrevocable or if you have multiple beneficiaries, you may need to file a trust tax return with the IRS each year. Your accountant or attorney can tell you whether your specific trust requires a return. The bank will send you a 1099 form at the end of the year showing interest earned, which you will need for tax purposes.
Common reasons the bank might decline or delay
Banks occasionally ask for additional documentation if the trust document is unclear or if the trustee's authority is not obvious from the document itself. If the bank asks for something beyond the certified trust copy and your ID, ask them to specify exactly what they need and why. Common requests include a letter from your attorney confirming your authority, a copy of the trust's first page showing the grantor's name, or clarification about whether the trust is revocable or irrevocable.
Some banks decline to open accounts for irrevocable trusts if the trust's beneficiaries are not clearly named or if the trustee's powers are unusually restricted. This is rare, but if it happens, ask whether a different bank in your area has fewer restrictions, or whether your attorney can provide a letter clarifying the trustee's authority to open a bank account.
If you are opening the account as a successor trustee (because the original trustee has died or stepped down), bring documentation showing your appointment — usually a page from the trust document itself. The bank will verify this before opening the account.
Frequently Asked Questions
Can I open a trust account online without visiting the bank?
Some banks allow it, but most require you to submit documents by mail or appear in person with your ID. Call your bank's new accounts department and ask whether they accept trust accounts online. If they do, they will tell you how to upload your certified trust document and ID. If they require a visit, you can usually schedule an appointment rather than waiting in line.
What is the difference between a trust account and a joint account?
A joint account is owned by two or more people personally; a trust account is owned by the trust itself. In a joint account, both owners have equal rights to the money. In a trust account, only the trustee can withdraw money, and they must do so according to the trust's terms. Trust accounts are used to hold assets for beneficiaries; joint accounts are used when two people want shared access to money.
Do I need a separate trust account for each beneficiary?
No. One trust account can hold money for multiple beneficiaries. The trustee decides how to distribute the money according to the trust document. Some people open separate accounts for clarity or to keep different types of assets separate, but it is not required.
Can I use my personal Social Security number for the trust account if the trust does not have an EIN?
Yes, many banks allow this for revocable living trusts. The bank will report the account under your name to the IRS. Ask the bank whether they prefer an EIN or your Social Security number, and whether you can switch later if you obtain an EIN.
What happens to the trust account if I die or step down as trustee?
The account stays in the trust's name. The successor trustee you named in the trust document takes over control. They will need to contact the bank with a copy of the trust document and their ID to update the account's authorized signers. The bank will not close the account unless the trust itself is dissolved.