How to Open a Trust Account at Your Bank

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 belongs to the trust itself, and a trustee (often you, or someone you name) manages the money inside it according to the terms you set out in a trust document. The main reason people open them is to hold money or property that will eventually go to beneficiaries—usually family members—without that money passing through probate court when you die.

Trust accounts work differently depending on the type of trust. A revocable living trust lets you control the account during your lifetime and change the terms whenever you want. An irrevocable trust locks in the terms and you cannot change them later, which can have tax advantages in some situations. A testamentary trust is created by your will and only comes into being after you die, so it does not need a bank account until then.

You do not need a trust account for every trust. Some trusts hold only real estate. Some hold investments. But if your trust will hold cash—for day-to-day expenses, emergency funds, or money waiting to be distributed—you will need a bank account in the trust's name.

Key Takeaways

You must have a signed trust document before you open a trust account; the bank will ask to see it.
Bring the trust document, your ID, and the trustee's ID to the bank, along with the trust's tax ID number (EIN) if the trust has one.
The bank will ask whether the trust is revocable or irrevocable, because the rules for closing or changing the account differ.
Trust accounts do not avoid probate by themselves—the trust document must name beneficiaries and the account must be titled in the trust's name.
Some banks charge monthly fees for trust accounts, and some require a minimum balance; ask about both before you open one.

Steps to open a trust account

Start by choosing a bank. Not all banks offer trust accounts, and some have higher minimums or fees than others. Call ahead or visit a branch and ask whether they open accounts in the name of a trust. If they do, ask what documents they need and whether there are any account minimums or monthly fees specific to trust accounts.

Gather your documents. You will need the original or a certified copy of your trust document. The bank needs to see it to confirm that the trust exists and that you (or whoever is opening the account) have the authority to do so as trustee. Bring a government-issued ID for yourself and for any co-trustee. If the trust has a tax ID number (called an EIN, or Employer Identification Number), bring that too. If it does not have one yet, the bank can help you get one, or you can explore for one through the IRS before you go.

Go to the bank with the trustee. The person who will manage the account—the trustee named in the trust document—must be present to sign the account paperwork. If there are co-trustees, the bank may require both to be there, or may allow one to sign on behalf of both; ask when you call.

Fill out the account process. The bank will ask you to choose an account type (usually checking, savings, or money market), set up online banking if you want it, and decide on any optional services. They will also ask whether the trust is revocable or irrevocable. This matters because revocable trusts can be changed or closed more easily, while irrevocable trusts have stricter rules.

Fund the account. You can deposit money by check, transfer, or cash. Some banks require a minimum opening deposit; ask what theirs is. After the account is open, you can move money into it from your personal accounts or from other sources.

Getting a tax ID for the trust

If your trust does not already have a tax ID number, you will need one before the bank will open the account. A tax ID (EIN) is a nine-digit number the IRS uses to track the trust for tax purposes. You can get one free by filling out Form SS-4 on the IRS website or by calling the IRS at 1-800-829-4933. The process takes about 15 minutes, and you get the number when ready.

Some trusts do not need an EIN. A revocable living trust that holds only your personal assets and has no income during your lifetime can use your Social Security number instead. But most banks prefer an EIN anyway, because it makes the account clearly separate from your personal finances. If you are unsure whether your trust needs one, ask the bank—they see this all the time and can tell you what they require.

What information the bank will ask for

The bank will need the trust's legal name, exactly as it appears in the trust document. They will ask for the date the trust was created. They will ask who the trustee is (that is you, or whoever is managing it), and they may ask for the names of the beneficiaries, though they do not always require this.

They will ask whether the trust is revocable or irrevocable. They will ask whether the trust is a living trust (created during your lifetime) or a testamentary trust (created by your will). They will ask who can sign checks or make withdrawals—usually just the trustee, but sometimes co-trustees or successor trustees. They will ask for contact information and may ask about the purpose of the account.

Be ready to show the trust document itself. The bank needs to see the signature page and the section that names the trustee and describes their powers. If you have a certified copy, bring that; if not, bring the original.

Fees and minimums to watch for

Trust accounts sometimes cost more than personal accounts. Some banks charge a monthly fee ranging from $5 to $25, while others waive the fee if you keep a minimum balance. Some require a higher minimum balance for trust accounts than for personal checking—$2,500 or $5,000 is common, though it varies by bank.

Ask about all fees before you open the account: monthly maintenance fees, overdraft fees, fees for wire transfers, fees for closing the account, and any other charges. Ask whether the minimum balance is the same for all account types or whether trust accounts have a different requirement. Some banks offer trust accounts with no monthly fee if you maintain a certain balance or set up direct deposit.

If fees are high at your first choice, shop around. Credit unions and smaller regional banks sometimes offer trust accounts with lower fees than large national banks. Online banks rarely offer trust accounts at all, because they do not have the staff to handle the legal complexity, so you will likely need to use a bank with physical branches.

After the account is open

Once the account exists, keep the trust document and the bank's records together. You will need both if you ever need to prove the account's authority—for example, if you are selling property held by the trust or if you need to show the bank that you have the right to withdraw money.

If the trust is revocable and you want to change it later, you can amend the trust document, but you will need to notify the bank of any changes that affect the account. If the trustee changes, the new trustee will need to go to the bank with the amended trust document and sign new account paperwork.

If the trust is irrevocable, changes are much harder. You cannot straightforward amend it the way you can a revocable trust. If circumstances change and you need to modify an irrevocable trust, you will likely need a lawyer and possibly a court order.

When the trust ends—either because you revoke it, because the beneficiaries receive their distributions, or because the trustee closes it—you will need to close the account. The bank will ask for documentation showing that the trust has ended and that the trustee has the authority to distribute the remaining funds.

When you might not need a trust account

Not every trust needs its own bank account. If the trust holds only real estate and no cash, there is no reason to open one. If the trust is a testamentary trust that will not exist until after you die, you do not open an account now—your executor or successor trustee will do that later, if needed.

If you are setting up a trust mainly to avoid probate and you do not have much cash to hold, you might use a payable-on-death (POD) account instead. A POD account is a regular personal bank account that names a beneficiary; when you die, the money goes directly to that person without probate. It is simpler than a trust account and requires no trust document, though it does not give you the same control during your lifetime.

Similarly, if you want to leave money to a minor child, you might use a custodial account (also called an UTMA or UGMA account) instead of a trust. A custodian manages the money until the child reaches a certain age, then the child takes control. It is simpler than a trust but less flexible.

Frequently Asked Questions

Do I need a lawyer to set up a trust account?

You need a lawyer to create the trust document itself, but not to open the bank account. Once you have a signed trust document, the bank can walk you through opening the account. However, if you are unsure whether a trust is the right tool for your situation, or if you want to make sure the trust document is written correctly, talking to a lawyer first is worth the cost.

Can I use my Social Security number instead of getting an EIN?

Some banks allow it for revocable living trusts that have no income, but most prefer an EIN. An EIN makes it clear that the account belongs to the trust, not to you personally, which can prevent confusion if you die or if the account is audited. Getting an EIN is free and takes 15 minutes, so most people do it.

What happens to the trust account when I die?

If the trust is revocable, it becomes irrevocable when you die. The successor trustee you named in the trust document takes over and manages the account according to your instructions. The money does not go through probate because it is already in the trust's name. The successor trustee will eventually distribute it to the beneficiaries you named.

Can I have multiple trustees on one trust account?

Yes. If you name co-trustees in the trust document, the bank can set up the account so that both must sign to withdraw money, or so that either one can sign alone. Ask the bank what options they offer and make sure the account setup matches what your trust document says.

What if I want to close the trust account later?

For a revocable trust, you can close it whenever you want—just go to the bank with your ID and ask. For an irrevocable trust, closing is harder because you cannot unilaterally change the trust. You will need to show the bank documentation that the trust has ended or that the trustee has the authority to close it, which may require a lawyer or a court order.

This guide is for general information only and is not medical, financial, legal, or other professional advice. For decisions specific to your situation, consult a qualified professional. See our Editorial Policy.