Nearly every U.S. bank will open an account in the name of a trust. National banks, regional and community banks, most credit unions, and a growing number of online banks all accept trust-titled checking, savings, and CD accounts. What differs among banks that allow trust accounts is how smoothly the paperwork moves, what digital features you get, and whether the institution can do anything beyond hold cash. The requirements are largely consistent: proof the trust exists, identification for the trustee, and the correct tax ID number.
National and Regional Banks
Large national banks such as JPMorgan Chase, Bank of America, and Wells Fargo open trust accounts routinely. Their compliance departments process trust documents every day and have standardized procedures for verifying trustee authority across state lines. If your documents are in order, opening the account is usually straightforward.
The trade-off is flexibility. A national bank’s trust account is typically a standard checking or savings product with the trust’s name on it. If your situation is unusual, say a trust with several co-trustees or complicated distribution terms, you may find yourself explaining it to several departments in turn. Regional and community banks often handle edge cases better because you can sit down with the person who actually makes the decision. Their trust experience varies, though, so ask whether the bank has opened accounts for your type of trust before you commit.
Credit Unions
Credit unions can hold trust accounts, but eligibility depends on the credit union’s charter. Federal credit unions operate within a defined “field of membership” based on a shared employer, an association, or a geographic community, and only people and entities within that field may join.1National Credit Union Administration. Choose a Field of Membership State-chartered credit unions follow their own state’s rules, which vary.2Federal Register. Chartering and Field of Membership Manual
Before approaching a credit union, confirm that the trust qualifies for membership under the institution’s charter. Some allow a trust to join if the trustee or a beneficiary is already a member. Others don’t accommodate trust-titled accounts at all. Call ahead.
Credit union deposits are not covered by FDIC insurance. They carry share insurance from the National Credit Union Administration, which provides equivalent per-beneficiary coverage for trust accounts up to $1,250,000.3National Credit Union Administration. Trust Rule Fact Sheet – Changes in NCUA Share Insurance Coverage
Online Banks
Several major online-only banks now open trust accounts without a branch visit. Ally Bank accepts both revocable and irrevocable trust accounts and lets you either convert an existing account or apply for a new one online.4Ally Bank. How To Set Up A Trust Account Online – Open a Trust Capital One takes a different route: you open a personal account first and then submit a notarized Certificate of Trust to convert it to trust ownership.5Capital One. How To Convert to Revocable Living Trust
Not every online bank offers trust accounts, and some that do only support revocable trusts. The documentation process can feel clunky since you’re mailing or faxing notarized forms. If you’re comfortable with that, online banks often offer higher savings rates than traditional institutions, which matters when the trust holds significant cash.
Trust Companies and Fiduciary Firms
If you need more than a checking account, dedicated trust companies and the trust departments of large financial firms offer a different level of service. They act as professional fiduciaries: managing investments, preparing taxes, handling distributions, and overseeing real estate held in the trust.
Firms such as Fidelity and Charles Schwab combine fiduciary oversight with brokerage platforms, letting the trustee keep investment execution and custody of non-cash assets under one roof. Schwab, for example, offers checking features including debit cards and bill pay for living trust brokerage accounts.
This costs considerably more than a retail bank account. Corporate trustees typically charge annual fees based on assets under management, often between 0.5% and 1.5%, with larger trusts paying toward the lower end. For a trust holding $1 million, that runs $5,000 to $15,000 per year. It makes sense for trusts that genuinely need professional management and is overkill if all you need is a place to park cash for distributions.
What You’ll Need to Open the Account
The requirements are consistent across institutions. The core question the bank is answering is whether the trust exists and whether you have authority to act for it.
- Certification of trust. Most banks prefer this condensed document over the full trust agreement. It confirms the trust’s existence, names the current trustees, identifies their powers, and lists the beneficiaries, without disclosing the trust’s private distribution terms. Many states have adopted provisions modeled on the Uniform Trust Code allowing banks to rely on the certification rather than review the entire agreement.
- Trustee identification. A government-issued photo ID such as a driver’s license or passport. Banks are required to verify the identity of anyone who controls an account under federal anti-money-laundering rules.
- Tax identification number. Either the trust’s own Employer Identification Number or the grantor’s Social Security Number, depending on the type of trust.
The bank will record the trust’s legal name exactly as it appears on the trust agreement. Any mismatch between the trust document, the tax ID records, and the bank application will stall the process. Check the spelling, dates, and precise legal name before you walk in.
SSN or EIN
Whether the trust uses the grantor’s Social Security Number or its own EIN depends on the type of trust and whether the grantor is still living.
A revocable living trust typically uses the grantor’s SSN for both banking and tax reporting while the grantor is alive. The IRS treats these trusts as extensions of the grantor rather than separate taxpaying entities, and no EIN is needed during the grantor’s lifetime.6Internal Revenue Service. Employer Identification Number
An EIN becomes mandatory once the trust can no longer use the grantor’s SSN. The most common trigger is the grantor’s death, which converts a revocable trust into an irrevocable one, and the successor trustee must obtain an EIN before the bank will update the account. Irrevocable trusts created during the grantor’s lifetime need their own EIN from the start.6Internal Revenue Service. Employer Identification Number
You can get an EIN instantly and for free through the IRS online application, as long as the principal place of business is in the United States and you have the responsible party’s SSN or ITIN. Form SS-4 by fax or mail also works but takes longer.7Internal Revenue Service. Get an Employer Identification Number
Banks use the trust’s tax ID to report interest income on Form 1099-INT.8Internal Revenue Service. Instructions for Forms 1099-INT and 1099-OID (01/2024) Giving the wrong number produces mismatched tax records and possibly an IRS notice.
FDIC Insurance on Trust Accounts
Trust accounts at FDIC-insured banks receive more coverage than individual accounts, though the rules have limits worth knowing before you pick a bank. The FDIC calculates trust deposit insurance by multiplying the number of owners by the number of eligible beneficiaries, times $250,000.9FDIC.gov. Trust Accounts
A single-owner revocable trust naming three beneficiaries is insured up to $750,000 at one bank. With five or more beneficiaries, coverage caps at $1,250,000 per trust owner per institution, regardless of how many additional beneficiaries you add.9FDIC.gov. Trust Accounts
Under current FDIC rules, all deposits a person holds in revocable trusts, irrevocable trusts, and informal payable-on-death accounts at the same bank are combined for insurance purposes.9FDIC.gov. Trust Accounts You can’t work around the cap by splitting funds between a revocable and irrevocable trust at the same institution. If the trust holds liquid assets near these thresholds, spreading deposits across multiple banks is the simplest way to maximize coverage.
When you open the account, the bank will ask whether the trust is revocable or irrevocable and will need the names of the beneficiaries. Getting that into the bank’s records is what triggers the higher coverage. If the account records don’t identify the trust or its beneficiaries, the FDIC may default to the lower individual-account limit.10FDIC. Financial Institution Employees Guide to Deposit Insurance – Trust Accounts
How the Account Must Be Titled and Used
How the account is titled matters more than most trustees expect. The title must clearly identify the fiduciary relationship so that trust funds are never confused with the trustee’s personal assets. A typical title reads “The Smith Family Trust, Jane Doe, Trustee,” or “Jane Doe, Trustee of the Smith Family Trust dated January 15, 2020.”
Only the named trustee can transact on the account unless the trust grants co-trustees or delegated agents signatory authority. The bank’s signature card should reflect exactly who has access. If the trust authorizes multiple signers, bring the relevant provisions when opening the account so the bank can document them properly.
Every dollar in the account belongs to the trust, not the trustee. Funds must be used for the beneficiaries and in accordance with the trust’s terms. Spending trust money on personal expenses, or making unauthorized investments, is a breach of fiduciary duty and can expose the trustee to personal liability.
On the practical side, trust checking accounts at retail banks generally come with the same features as personal accounts: checks, debit cards, online banking, and bill pay. Some institutions restrict certain features for trust accounts, so confirm what’s available before opening. Monthly maintenance fees are typically comparable to standard checking accounts at the same bank.