Estate Planning Attorney in Laguna Hills, CA | Confidential Consultations
Estate Planning Attorney in Laguna Hills, CA | Confidential Consultations
When families create a living trust in California, one of the first questions that comes up is whether the trust should have its own bank account. The answer depends on how your trust is set up, but in most cases, opening at least one dedicated trust account is an important step toward making sure your estate plan actually works.
At Pevney Estate Planning, we help families across Orange County understand how their trust functions in real life, not just on paper. Here’s a simple guide to help you know when and why your trust may need its own bank account and how to open one correctly.
Creating a living trust is an important step in protecting your family, but signing the documents is not enough. In California, a trust must be funded to be legally valid.
Funding your trust means transferring ownership of your assets, your home, savings, or investments into the name of the trust. This allows those assets to be managed and eventually distributed according to your instructions without court involvement or probate.
If your trust is not funded, it is like an empty container. It exists, but nothing inside it is protected.
In most cases, yes. Opening a bank account in the name of your trust helps organize your finances and ensures that money connected to the trust is handled properly during your lifetime and after you pass away.
When you pass away, any proceeds from the sale of property or other trust assets must be deposited somewhere. The check for that money is not written to you personally, it’s written to the trust. Without a trust account, your successor trustee would have nowhere to deposit those funds.
This dedicated account acts as a clearing house for the trust’s money. It makes it easier for your trustee to pay bills, distribute assets to your beneficiaries, and manage your estate smoothly and privately.
When you meet with your bank or credit union, you’ll typically need three key things:
Most major banks and credit unions in California are familiar with setting up trust accounts. When you go, bring the entire trust folder or binder your attorney provided. You’ll likely need to show your Certification of Trust, which is a short summary document that proves the trust exists and identifies who is in charge.
You don’t have to move all your assets into the trust account. In fact, many people start by depositing a few hundred dollars. The goal is not to make it your main checking account but to ensure there’s a place for trust-related funds to go, especially after a property sale or a transfer from another financial account.
If you have multiple accounts at the same bank, you can link them together so funds can move easily when needed.
Here’s why a dedicated trust account can make a big difference for your family and your trustee:
In short, it gives your loved ones the ability to carry out your wishes quickly and privately, exactly as you intended.
Many people assume that creating a trust automatically changes ownership of all their accounts. In reality, each account must be retitled or designated in the trust’s name.
Others believe that opening a trust account will complicate their taxes, but for most revocable living trusts, the process is straightforward. You report income under your personal Social Security number just as you did before.
At Pevney Estate Planning, we explain these details during every trust signing. Clients leave with clear, written instructions so they can walk into their bank prepared.
Recently, a couple from Laguna Hills came to us after setting up a trust online. They hadn’t opened a trust account or transferred their home deed. When the husband passed away, the family was surprised to learn that the trust couldn’t function properly; their home and savings were still in their personal names.
After working with our office, the family retitled their assets, opened a trust account, and avoided what could have been months of court delays. Now, their trust is fully funded and ready to protect their children in the way they originally intended.
If you already have a living trust, take time to review how it’s funded. Do your real estate deeds, financial accounts, and life insurance policies reflect your trust’s name? And does your trust have a bank account where assets can be held safely?
If you’re not sure, that’s where we can help.
At Pevney Estate Planning, we guide families across Laguna Hills, Irvine, Mission Viejo, and all of Orange County through each step of estate funding so that their plan works exactly as they expect, not just on paper, but in practice.
Your living trust is one of the most powerful tools to protect your legacy. A simple step like opening a trust bank account can prevent major delays and headaches later on.
If you live in Southern California and want to ensure your estate plan is fully funded and up to date, let’s talk.
Schedule your free 30-minute consultation today at ocestateplanlawyer.com or call (949) 377-2996 to book your review with Michael Pevney, your trusted estate planning attorney in Orange County.
