How to Change a Bank Account Title to a Trust

Some certified financial planners and accountants advise their clients to convert personal bank accounts into trust accounts to simplify their estates. The Internal Revenue Service regards irrevocable trusts as legal entities that require separate Tax Identification Numbers. People who establish revocable trusts can choose to apply for a separate TIN or use their own Social Security number for the trusts. Generally, you cannot change the title of an account to add an irrevocable trust. You must close the account and open a new one under the trust's TIN. You can change the title of an existing account to incorporate a revocable trust.

Instructions

1. Ask your attorney to provide you with a copy of your revocable trust. Review the document and make sure the copy has been notarized. State laws vary, but most trust documents are signed by the trustee, witnesses, notary and in some instances the successor trustee.

2. Go the your bank. Provide an account representative with your revocable trust document. The bank employee must copy the trust in its entirety and have the banks legal team review it to make sure it complies with state laws. After the legal review, ask the bank representative to change your existing account type to a trust account. Show the representative your ID.

3. Sign the bank signature card for the account as trustee. Leave the signature spot reserved for the trust entity blank. Ask the banker to give you an account print out reflecting the title change. If necessary, ask the banker to order you some new checks and deposit slips that reflect the account change. Take your trust document back and leave the bank.

Tips & Warnings

• If your trust names someone other than yourself to act as trustee, you must take that individual with you to the bank and have them sign the signature card. Normally, people name themselves as the trustee for revocable trusts but appoint a friend or family member as the successor trustee. The successor trustee assumes the trustee's responsibilities if the trustee dies or becomes unable to perform their duties.

• If you establish a trust and appoint another individual as the trustee, you cannot prevent that individual from accessing the account unless you provide the bank with an amended trust document. You cannot remove an individual from an irrevocable trust unless the person in question dies, becomes mentally incapacitated or consents to the change.

References

• Banking Questions: Payable on Death vs. Trust Accounts
• Federal Deposit Insurance Corporation: Ownership Categories Revocable Trust Accounts

Resources

• Washington State Bar Association: Revocable Living Trusts