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.
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.
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.
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.
When you transfer a bank account to a trust, you are giving up personal ownership of the bank account.
- Nolo's Make Your Own Living Trust; Attorney Dennis Clifford, 2009
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