How to Set Up a Revocable Trust Account
A revocable trust account must be set up at a financial institution once a revocable trust has been established. Depending upon the state, only certain types of financial institutions, such as a state for federal chartered bank, are allowed to open trust accounts. There are some basic procedures and guidelines that can help you to set up a revocable trust account.
- Get familiar with the trust agreement. Know that the grantor is the one who has established the revocable trust. The beneficiary is the one who obtains the benefits of the trust as laid out by the grantor.
- Go to the financial institution that you have selected for the loan. It is best if you select a bank or savings and loan that have done business for the grantor in the past.
- Provide the representative of the bank who's responsible for opening accounts dealing with trust matters, the original trust agreement. The bank officer must make a copy of the trust document for the institution records.
- Explain the importance and need of opening up a revocable trust account. You will need some forms of identification and documents to open the account. You will probably need at least a checking account to deal with payments you will receive from the trust.
- Title the account in the name of the trust. For example, Michael Smith Revocable Trust; Mary Smith, Trustee.
- Deposit funds into your revocable trust account. Only place funds in this account that initially belonging to the grantor into this account. You should never deposit funds into this account that are you own money or that belong to someone else. This could be a very serious breech of the law dealing with a revocable trust.