What is a bank trust account?

Updated November 22, 2016

A bank trust account could refer to two different accounts, including a trustee's current account or a bank account held by the trustee as part of the trust property.

Trustee Account

A trustee has a duty to provide trust income and property to the trust beneficiaries. To make these payments to the beneficiaries, the trustee should create a current account.

Accounts Held In Trust

Some people want to transfer their bank accounts to trust. This is different from the current account that the trustee sets up to administer beneficiary payments.


Many types of bank accounts can be held in trust. For example, savings accounts, CDs, brokerage accounts and current accounts can all be held in trust.


The purposes for putting financial or bank accounts into a trust are plentiful, including to protect the money from creditors, to avoid probate, and to benefit the beneficiaries according to established guidelines in the trust.


When you transfer a bank account to a trust, you are giving up personal ownership of the bank account.

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About the Author

The Constitution Guru has worked as a writer and editor for "BYU Law Review" and "BYU Journal of Public Law." He is an experienced attorney with a law degree and a B.A. degree in history with an emphasis on U.S. Constitutional history, both earned at Brigham Young University.