Yes, you can put a bank account in a trust, and it works by retitling the account in the trust's name
You can move a bank account into a trust by changing the account's title from your personal name to the name of the trust. The bank does not own the account or control it — you do, as the trustee. The money stays accessible to you during your lifetime, and when you die, the account passes to whoever you named as beneficiary in the trust document, without going through probate court.
This is different from naming a beneficiary directly on the account (called a payable-on-death or POD account). A trust gives you more control over how the money is distributed and to whom, and it can cover multiple accounts and other assets in one document.
Key Takeaways
- You retitle the account in the trust's name by contacting your bank and providing a copy of the trust document and your ID.
- The account remains under your control as trustee during your lifetime, and you can withdraw, deposit, and spend the money as usual.
- When you die, the account passes directly to the beneficiary you named in the trust, bypassing probate court.
- Most banks allow this, but some have restrictions on trust accounts or require the trust to be irrevocable; call your bank first to confirm their rules.
- Putting an account in a trust does not change how the IRS taxes the account or affect your Social Security or Medicare benefits.
What the bank needs from you to retitle the account
Contact your bank and ask to retitle the account in the name of the trust. You will need to provide a certified copy of the trust document (the bank may ask for the first and last pages, or the entire document). Bring a photo ID, and be ready to sign new account paperwork. Some banks will do this over the phone or by mail; others require you to visit a branch in person.
The bank will create a new account title that reads something like "Jane Smith, Trustee of the Jane Smith Revocable Living Trust" or "The Jane Smith Revocable Living Trust." The exact wording depends on your bank's format. Ask the bank to confirm the title in writing before the change is final, so you know it matches your trust document.
If the account is a joint account (held with a spouse or another person), both account holders usually need to sign the paperwork to move it into the trust. If you are the sole account holder, only you need to sign.
How the account works after it is in the trust
Once the account is retitled, you use it exactly as you did before. You can deposit money, withdraw money, pay bills, and receive direct deposits. Your debit card and online banking access remain the same. The trust itself does not require a separate tax ID or tax return during your lifetime if it is a revocable living trust (the most common type for this purpose).
You are still the trustee, which means you are the person managing the account on behalf of the trust. If you become incapacitated or die, the successor trustee you named in the trust document takes over and manages the account according to your instructions.
What happens to the account when you die
When you die, the successor trustee you named in the trust document takes control of the account. They do not have to go to probate court to prove they have the right to the money — the trust document is the proof. This usually makes the process faster and more private than probate.
The successor trustee follows the instructions in your trust about who receives the money and when. For example, you might direct them to give the account to your children equally, or to hold the money in trust for a grandchild until they turn 25. The trustee distributes the money according to your wishes, not according to state law.
Banks that allow trust accounts and those with restrictions
Most major banks (Chase, Bank of America, Wells Fargo, Citibank) allow you to retitle accounts in a trust without issue. Credit unions and smaller regional banks usually allow it as well. However, some banks have restrictions: they may require the trust to be irrevocable, may charge a fee to retitle, or may not allow certain account types (like some money market accounts) to be held in a trust.
Call your bank's customer service line or visit a branch and ask directly: "Can I retitle my account in the name of my revocable living trust?" If they say no, ask why — it may be a specific account type, or it may be a policy you can work around. If your bank refuses and you want the account in a trust, you can open a new account at a different bank that allows it and transfer the money over.
Tax and benefit implications of a trust account
Putting a bank account in a revocable living trust does not change how the IRS taxes the account. You still report the interest income on your personal tax return using your Social Security number, just as you did before. The trust itself does not file a separate tax return during your lifetime.
A trust account also does not affect your Social Security benefits, Medicare coverage, or Medicaid may be able to access, as long as the trust is revocable and you are the trustee. If you are receiving means-tested benefits (like Supplemental Security Income or Medicaid), check with your benefits administrator before moving an account into a trust, because the rules can vary by program and state.
Alternatives to putting an account in a trust
If you want the account to pass to someone without probate but do not want to set up a full trust, you can name a payable-on-death (POD) beneficiary directly on the account. This is simpler and faster — you just fill out a form at the bank. When you die, the money goes to the POD beneficiary automatically. The downside is that you cannot give instructions about how the money should be used or when it should be distributed.
You can also make a joint account with a right of survivorship, which means the other account holder automatically owns the account when you die. This is common for spouses but can create problems if the joint holder gets sued or files for bankruptcy — the creditor may be able to reach the account.
Frequently Asked Questions
Do I need a lawyer to put my account in a trust?
No. You can retitle the account yourself by contacting the bank. However, you do need a trust document first. Some people write their own trust using online templates or software; others hire a lawyer to draft one. The cost of a lawyer ranges widely by location and complexity, but a simple revocable living trust typically costs between $500 and $2,000.
Can I still access the money if the account is in a trust?
Yes. As the trustee, you have full access to the money during your lifetime. You can withdraw it, spend it, or move it to another account whenever you want. The trust does not restrict your access — it only controls what happens to the money after you die.
What if I want to remove the account from the trust later?
You can retitle the account back to your personal name at any time. Contact the bank, provide your ID, and ask them to change the title. This takes the same steps as putting it in the trust in the first place. You might do this if you change your mind about your estate plan or if you want to simplify your accounts.
Does putting an account in a trust cost money?
Most banks do not charge a fee to retitle an account in a trust. However, some banks charge a small fee (usually $25 to $100) or require a minimum balance. Ask your bank about their specific policy before you start the process.
What if my bank says they cannot put the account in a trust?
Ask why — it may be specific to that account type or a policy that has exceptions. If they refuse, you can open a new account at a different bank that allows trust accounts and transfer your money over. You can also use a payable-on-death beneficiary on that account instead, which achieves a similar result without a trust.