A trust account is a financial account created and funded by an individual often to help transfer assets in an easier and less-taxed fashion.
For example, a totten trust is a trust account whereby a beneficiary can legally take control of assets in the event of death to the individual who opened the trust account.
What you need to know
A trust account is a financial account that is created and funded by an individual for the benefit of a third party. Trust accounts can contain a wide variety of assets. The assets included in a trust account can include cash, real estate, personal property, stocks, mutual funds, bonds, and other investments. The terms of the trust will determine the distribution of the assets within the trust account.
Many different types of trustees can manage the funds within a trust account. A trustee can be the person who created the trust account, a family friend or relative, or even a bank or other financial institution.
How to open a loved one’s safe deposit box after they die
Opening the safe deposit box of your spouse or other loved one isn’t as easy as driving down to the bank. States often require multiple forms, and the laws depend on where you live. To make things simple, we’ve listed every state and what they require so you can open a safe deposit box quickly and easily.
Find your state’s rulesJohn is 80 years old and is in the process of setting up his estate plan. After consulting with his bank, John writes a trust agreement to create a trust account. He then transfers a significant portion of his assets to the trust to fund the account. In the trust agreement, John stipulates that the bank will serve as the trustee, and he names his four children as equal beneficiaries of the trust account.
In collaboration with
Aaron Schnoor
Aaron Schnoor is an Assistant Vice President and Trust Officer at Wells Fargo Wealth Management.
Aaron received his undergraduate degree in Trust and Wealth Management from Campbell University in North Carolina, along with a minor in Financial Planning. Aaron continued his education with an MBA in Financial Services, also from Campbell University.
Aaron frequently writes as an industry expert on fiduciary topics related to trusts, estate settlement and generational wealth management. His work has appeared in The New York Times, Forbes, the Trust Education Foundation and many other publications.
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