What Is a Bank Trust Account?

By Phil M. Fowler
What Is a Bank Trust Account?
Keith Brofsky/Photodisc/Getty Images

A bank trust account could refer to two different accounts, including a trustee's checking account or a bank account held by the trustee as part of the trust property.

Trustee Account

these payments, the beneficiaries, the trustee, a checking account
Photodisc/Photodisc/Getty Images

A trustee has a duty to provide trust income and property to the trust beneficiaries. To make these payments to the beneficiaries, the trustee should create a checking account.

Accounts Held In Trust

Some people want to transfer their bank accounts to trust. This is different from the checking account that the trustee sets up to administer beneficiary payments.

Types

Checking accounts, trust
Dean Sanderson/iStock/Getty Images

Many types of bank accounts can be held in trust. For example, savings accounts, CDs, brokerage accounts and checking accounts can all be held in trust.

Purpose

The purposes, financial or bank accounts, a trust
Jupiterimages/Pixland/Getty Images

The purposes for putting financial or bank accounts into a trust are plentiful, including to protect the money from creditors, to avoid probate, and to benefit the beneficiaries according to established guidelines in the trust.

Warning

you, a bank account, a trust, you
LDProd/iStock/Getty Images

When you transfer a bank account to a trust, you are giving up personal ownership of the bank account.