Banking Bank Reviews

Best Banks for Trust Accounts [2024]: Low or No Fees and Services When You Need Them

Using a trust lets you avoid probate and decide exactly how your wealth will be distributed. These accounts provide a place to put your funds and offer opportunities for growth, too.

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Updated Oct. 11, 2024
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Trusts are a way to securely hold funds for someone’s future use. Because a trust is its own legal entity, it can have its own bank account. The best banks for trust accounts will manage your funds properly and provide you with the right services for your needs.

However, trusts can be complicated, so it’s important to do your due diligence before opening an account. You’ll want to be sure the trust can add and withdraw funds conveniently, earn interest, or invest for the future, depending on who the trust is for and who is managing the account. You may also want to work with an estate attorney to ensure everything is set up according to your wishes. We’ve rounded up five of the best banks for trusat accounts below to help you as you narrow your search.

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What is a trust account?

A trust account is a type of bank account used to manage a trust’s assets. A trust is a legal contract between:

  • The grantor: This is the person who owns the assets.
  • The beneficiary: This is the person who will receive or benefit from the assets.
  • The trustee: This is the person (or entity) who holds and manages the assets for the beneficiary.

Trusts can help protect assets, make charitable giving easier and streamline wealth transfers between spouses, children, and grandchildren. They can help make sure your assets are distributed the way you want them. They can also help your beneficiaries avoid probate.

Some examples of assets you can hold in a trust include:

  • Cash
  • Stocks
  • Bonds
  • Bank accounts
  • Real estate
  • Mining rights
  • Business interests

After you move assets into the trust’s name, you can establish a bank account to hold them until it’s time to disburse them to a beneficiary.

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Best banks for trust accounts

  • Ally Bank
  • Fidelity
  • Synchrony Bank
  • Alliant Credit Union
  • Charles Schwab
  • Compare the best bank accounts for trusts

    Bank Best for Products Fees
    Ally Bank Online banking CDs, checking, money market, savings No monthly maintenance fees
    Fidelity Investing Brokerage Investment fees; service fees apply for optional personal trustee service ($4,500 minimum)
    Synchrony Bank Saving CD, High yield savings, money market No monthly service fees
    Alliant Credit Union Credit union accounts CDs, checking, high-yield savings, supplemental savings No monthly service fees
    Charles Schwab Trust services Brokerage, checking, savings No monthly maintenance fees; investment fees may apply

    Ally Bank

    Best for: Online banking

    Ally’s online banking options offer very competitive annual percentage yields (APYs) – and that extends to trust accounts, too. I like that you can open a trust account online easily with Ally and choose from several different types of accounts, including CDs, checking, and savings. You can also have more than one trustee on the account (although only one account owner). If you already have an account with Ally, it’s fairly simple to convert it to a trustee account.

    Although I prefer to manage my accounts online, you may want to consider a different option if you prefer in-person banking, as there are no physical branches. However, Ally does offer help over the phone.

    Pros
    • No monthly fees
    • You can open an account online
    Cons
    • No trustee management services
    • No physical branches

    Visit Ally Bank

    Fidelity

    Best for: Investing

    If you’re looking for a place to invest and grow your trust funds, Fidelity can help. You can open a trust account at Fidelity online or re-register an existing account to be a trust account. You can even collect digital signatures from trustors to make the process even more streamlined.

    If you’re looking for professional assistance with managing your trust, Fidelity can do that, too. Its personal trust services start at $4,500, plus 0.45% fee (on the first $2 million of assets) if Fidelity acts as co-trustee.

    Pros
    • Can open an account online
    • Can re-register existing accounts as trust accounts
    • Offers personal trust services
    Cons
    • Investment fees apply
    • Personal trust service fees start at $4,500

    Visit Fidelity

    Synchrony Bank

    Best for: Saving

    If you’re the set-it-and-forget-it type, you might prefer the savings options available at Synchrony Bank. There’s no minimum balance requirement and no monthly fees, which leaves more of your principal available for earning. I like that Synchrony will supply ATM cards and reimburse some ATM fees, although cards are only for trustees who are also grantors on the account.

    Synchrony offers competitive APYs on most products except for very short-term CDs. However, if you want a bank with physical branches, Synchrony isn’t it. You can’t open a trust account online, either; you’ll have to call 1-866-226-5638 instead.

    Pros
    • Competitive APYs
    • Multiple account options
    Cons
    • Can’t open a trust account online
    • No physical branches

    Visit Synchrony Bank

    Alliant Credit Union

    Best for: Credit union accounts

    For those who prefer credit unions over private banks, Alliant Credit Union offers several options for trust accounts, including a yield-earning checking account, a high-yield savings account, supplemental savings accounts, and CDs. While Alliant’s APYs aren’t the highest, they’ll still help you grow your funds.

    On the other hand, Alliant may not be the best choice if you need convenient access to the funds; no debit or ATM cards are available for trust accounts, and there are no physical branches to visit, either. Plus, you’ll need to join the credit union before you’re eligible to open a trust account.

    Pros
    • Multiple account options
    • Monthly dividends
    Cons
    • Must be a credit union member
    • No branches

    Visit Alliant Credit Union

    Charles Schwab

    Best for: Trust services

    Trusts can be complicated, and sometimes you want some professional advice. Charles Schwab offers several trust accounts, including its brokerage, checking, and savings. Its Schwab One trust account is available for estates of every size. Plus, Schwab’s private trust services can help administrate the trust and manage investments. Schwab can act as a corporate trustee, co-trustee, or successor trustee, smoothing the management of the trust.

    However, hiring Schwab to manage your trust account can be expensive and may require a significant investment. With Schwab Personal Trust Services, clients pay a 0.50% fee on the first $5 million invested and 0.25% on the next $5 million. The minimum annual fee for Personal Trust Services is $5,000.

    Pros
    • Multiple account options including brokerage account
    • No monthly service fees
    • Personal trust services
    Cons
    • Personal trust services have a minimum fee of $5,000

    Visit Charles Schwab

    What types of trusts are available?

    Some of the most common types of trusts include the following:

    • Revocable trust: A revocable trust is also called a living trust and can be changed after it's created. They detail how your assets should be distributed after death. A revocable trust allows you to avoid probate, which can be a long, public process.
    • Irrevocable trust: You can’t change an irrevocable trust once it's been set up. The assets included in the trust are removed from your estate, and the trust files and pays its own tax return.
    • Charitable trust: Charitable trusts help you leave a lasting legacy to a charitable organization.
    • Special needs trust (SNT): If you have a child or family member with special needs, you can use a trust to care for them after your death. They allow you to provide for your family member after your death while keeping them eligible for government benefits.

    What to look for in a bank for trust accounts

    Finding the best banks for trust accounts can take dedicated research. Understanding some of the primary features of a trust account and comparing your options will help.

    Minimum balance requirements

    Each bank requires a different minimum balance for trust accounts. Look for a bank whose minimum balance aligns with your needs. You may need to phone the bank to find out the balance minimums.

    Account insurance

    Checking and savings accounts at banks and credit unions are usually insured by the FDIC up to $250,000, meaning your funds are protected if the bank goes under. However, brokerage accounts don’t have the same protections, and investments are always subject to risk.

    The exact amount of insurance the trust is eligible for is based on the number of beneficiaries and the assets included. Generally, account balances are insured if they are less than the insurance limit. The excess amounts are uninsured if the account balance exceeds the allowed balance per beneficiary.

    Low fees

    Trustee fees are payments for managing the trust and can be a significant expense. Banks may also charge separate maintenance fees on trust accounts, which can eat into your trust balance considerably.

    Understand the fee structure of the financial institution you’re working with. Ask detailed questions and get the fee structure in writing so that you are prepared before the trust account is created. There are so many options available with no monthly fees that I always recommend looking at a no-fee account first.

    Convenience

    When you’re searching for an institution to hold your assets in trust, look for a bank that is easy for you and your beneficiaries to work with. Consider visiting a branch or speaking with a banker who can answer your questions in detail. Ensure your beneficiaries are also comfortable working with the trust bank and trustees. If you have corporate trustees, make sure at least one of them is familiar with your beneficiaries and that your family members feel comfortable going to that person with questions or concerns.

    FAQs

    Does a trust need its own bank account?

    Having a bank account for your trust can help you move assets, such as cash, into the trust. Keep in mind that when you include assets (like a checking or savings account) in an irrevocable trust, the ownership of that account is transferred from your name into the name of the trust.

    Once an account is moved into a trust, you cannot access the funds being held, so you shouldn’t include accounts that you still need to pay bills from or access for regular living expenses. You must also change the ownership of annuities and safety deposit boxes if you include them in your trust.

    Does Bank of America offer trust accounts?

    Bank of America offers irrevocable and revocable trust accounts through its private banking solutions. Bank of America does not disclose its minimum balance or fees for its trust accounts on its website. You can contact a Bank of America private client advisor to discuss your needs.

    What are the disadvantages of a trust?

    Trusts can become highly complicated. Because a trust has to account for many different circumstances or scenarios, it must be written in extreme detail by an estate attorney. A trust must be as specific and accurate as possible to ensure it is properly executed.

    Other disadvantages of a trust include the cost of setting up and maintaining it and the precise record-keeping required. Even though setting up a trust means avoiding probate, which can be costly and time-consuming, a trust still involves an attorney, filing fees, title transfers, and compensation to trustees.

    Products that didn’t make our list

    During the course of my research, I came across other banks that offer trust services, but these didn’t make it on our list.

    • Wells Fargo: Trust services are available through Wells Fargo’s The Private Bank. Wells Fargo will serve as corporate trustee and can administer your trust. It also offers legacy and special needs trusts. However, some private banking with Wells Fargo requires a minimum balance of $500,000, which may be out of reach for some. Read our Wells Fargo Bank comparison.
    • Bank of America: Bank of America offers a variety of trust services, but most are geared toward high-net-worth Private Client families. You’ll need to work with a Private Client advisor to learn about your options and set up the account. Read our Bank of America Review.
    • U.S. Bank: You can arrange for U.S. Bank to manage your trust and serve as a corporate trustee. However, the bank does not disclose its account options or fees. You’ll need to talk to a wealth advisor to find out your options. Read our U.S. Bank review.

    Bottom line

    Setting up a trust can be a complicated process that needs to be handled by an attorney familiar with estate planning and trust creation. Finding the right bank to manage your trust account after it has been created can ensure your beneficiaries are well-educated before they inherit your assets.

    Be sure to research your trust account options before signing up, and pay attention to account minimums, insurance coverage, and fees charged by the bank.

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