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Revocable Living Trust Savings Accounts

MNfarmer
  |     |   11 posts since 2012

I am having a hard time finding which banks provide Revocable Living Trust accounts. It would be nice to include in your blog or ratings page which banks provide for this service. 

I have accounts at Ally which have been great and very easy to set up. But have not benn able to find other Banks that provide the same service for trust accounts. 

I requested this feature a year ago. Please can anyone provide info on banks with that provide trust accounts?

Thanks

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41


Answers
TrustMe
  |     |   2 posts since 2018
I know this is an old post, but there are some recent replies so I wanted to contribute my experience. I was looking for the exact same thing as the original poster (revocable living trust savings accounts) and just went through the process with 3 banks. Two of my current online banks (Barclays and Capital One 360) don't allow accounts in the name of a trust, so I had to leave them.

Ally Bank was far and away the easiest to deal with and not just because I already have a regular account with them. The application is done electronically on their website, including uploading scans of the trust documents. Nothing need to be filled out by hand or put anything in the mail. They processed it very quickly and the account was open in less than 3 business days.

Synchrony Bank also has a living trust savings account. The application form had to be filled out by hand and mailed in with the trust documents. They processed it in about 5-7 business days with a delay because my credit is frozen. They gave me my account number over the phone as soon as I verified my information and I was able to establish my online account before waiting for anything to come in the mail.

Alliant Credit Union accepts living trust savings accounts as well. I disagree with the previous post that said it was easy to set up the account. They were by far the most difficult. (Down side of dealing with a small credit union instead of a big bank.) You have to give a nominal amount to their selected charity to join the credit union, which is a fine cause, but a little annoying when others cost nothing to join. The application form had to be filled out by hand and mailed. Again just a little annoying because they PDF of the application from website prints to a single-sided legal paper with very small spaces to write. And if you can't print on legal paper, it makes the spaces even smaller. After mailing it in with the trust documents, I heard nothing from them for at least 3-4 weeks business days. When I called to follow-up, the rep assured me the trust team would get back to me within 1 business day, which didn't happen. I called again and was given the same response and still no call back. Yes a third time and no call back. On the fourth try, I was finally able to speak to someone in "special services" about the application. They had opened the account but didn't return my call to let me know. They also had my mailing address wrong and wouldn't give me the account number over the phone. That made no sense because they asked me to correct the mailing address and I could have given them any address I wanted. All of this happened weeks after the other two accounts were open. Needless to say, I will not be parking any money with them unless I run into FDIC limits with the other accounts.
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Rosedala
  |     |   45 posts since 2010
Thanks TrustMe for the very helpful report on some of the better and the worse institutions, especially on Alliant. As well as for a reminder about opening accounts WITH Revocable Trust. I tend to open and forget them (wasn't this the original idea back then?) lol! But I recognize the importance of doing it each time. :(
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mqt4n6
  |     |   16 posts since 2015
I have been an Alliant Credit Union member for several years. A couple years ago I opened a Trust Account there with no difficulty. Maybe the difference with my experience was that I had been a member already. That said, I know some of us may have unique factors to be considered, but Alliant Credit Union is one of the best, if not the best credit unions in the country. This is based on the interest rate for checking and savings accounts, ease of ACH transfers with multiple external accounts, and customer service. If someone can name a better credit union available nationwide, I would be interested in hearing about it.
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Rosedala
  |     |   45 posts since 2010
I'm glad some of you are bringing up the important matter of Living Revocable Trust accounts, because my extreme disappointment is that many banks and credit unions too demand to have my ENTIRE TRUST in order to open a RT Checking Account (or whatever other accounts). I offer them a copy of the first and the last 2 signature pages of my Trust but they insist on having the entire document!

I’m very tired of looking for other banks and credit unions…to find most of them also want the whole document. I feel it’s very degrading to me and there ought to be a law as to just how much an institution can dig into one’s affairs, don’t you think?

Now I don’t know what to do. Would any of you surrender your intimate documents just to open an account??? Thanks ever so much for your opinions. :o)
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MNfarmer
  |     |   11 posts since 2012
I also have used Ally for a revocable trust account with great results.
https://www.ally.com/learn/trust-account/

I also used Pure Point for a revocable trust.
https://www.purepoint.com/res/docs/forms/trust_certification.pdf

I also used Discover Bank for a revocable trust.
https://www.discover.com/online-banking/assets/National_TrustApp.pdf

I also used Synchrony Bank for a revocable trust.
https://www.synchronybank.com/banking-resources/faq/?UISCode=0000000

It appears that American Express allows for revocable trusts but I have not tried them yet.
https://www.americanexpress.com/personalsavings/revocable-living-trust-re-titling
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WarrenClark
  |     |   2 posts since 2018
Thanks for such helpful post.
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OGC
  |     |   1 posts since 2017
Not sure on revocable but irrevocable trust accounts are available from Discover, Ally, Synchrony,
Cal First National, Zions Bank, Ever Bank, Nationwide Bank, Giant Bank, Bank of Internet.
Any others?
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TJ
  |     |   5 posts since 2010
revocable trust is available for discover, ally, alliant, navy fed, pen fed, bunch of others, i've had and have them. you may not see them on line application, but call them
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Marcos
  |     |   3 posts since 2018
I spoke with Capital One today. They confirmed that they still do NOT allow living trust structures for new accounts.

As Ken mentions in his recent blog entry on Capital One and POD's, ING Direct had provided this revocable trust option. Many of us were very pleased with this alternative - since discontinued by Capital One - although existing 360 accounts are at least grandfathered.

One major issue is that the newer, and higher-earning 360 Money Market Account is unavailable for this account vehicle. The new POD arrangement does not meet the needs of many us, and I for one will not make a go of it.

However, the CSA stated that this is a priority for them, and that an internal timeline calls for a YE implementation date. That is good to know. However, this has taken far too long and I do not plan on waiting further.
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Rosedala
  |     |   45 posts since 2010
Marcos, this is a struggle with most institutions. I don't know WHAT the mysterious secret is that makes them so reluctant to accept a living revocable trust account and the few who do...put so many obstacles, like demanding to have the entire trust!!! I myself am giving up, but may I ask of all of you for your opinions on a different problem on same subject?:

Although I'm sort of half way done with retitling my trust, it IS an enormously time consuming task which repeats each time you move around your accounts even within the same banks, CUs, etc. plus fighting them without counting the stiff price of creating this trust...thus I quit and wish to revoke my trust, because:

In addition to other life's problems, this retitling keeps me too busy and worried so instead of enjoying the rest of my life, I'm tied up to this new "obligation". While I'm happy to leave all my savings to the good charities I chose, I figure they can wait for the probate to get the money (as well as get a little less because of the extra probate costs) and I don't have so much that taxes will eat up their coming money either. I have a simple estate, have no properties real or intellectual, just CDs, MMs, etc. and as to privacy I don't care once I'm gone. Finally, I ordered that all my accounts including the IRA, be immediately terminated upon my demise regardless of penalties, etc. so another reason to not need a trust. (Have I left out any other reasons?... lol!)

Do you think I stand to lose something by dissolving my LT? The attorney I hired to be my executor and successor trustee reacted to my decision incredibly FURIOUS!!! Is it more profitable for an attorney to have an LT than a will? I read somewhere: "And in some cases, the supervision that probate provides is beneficial, Hurme says: 'Somebody is looking over what the executor is doing...') interesting no?

Most grateful for any thoughts. :)

P.S. If you wonder, I no longer have family and my close friends died, the last one just months ago...
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Marcos
  |     |   3 posts since 2018
I couldn't agree more Rosedala that creating - and maintaining - properly titled living trust bank accounts is a great deal of work and major hassle!

However, I am not personally ready to call it quits yet given concerns about probate costs, probate delays, and privacy. I'm moving my Capital One accounts to Ally, which are extremely user friendly in this regard.

One very important item with regard to potential bequests to charities - and IRAs. If you make the charity the beneficiary of a Traditional IRA, they'll receive the funds tax-free, and the funds won't go through probate either. That may well achieve your succession plan objectives without the need for a living trust.

You could also make the living trust the beneficiary of the IRA, and then the charity the beneficiary of the living trust, but this would seem to be an unnecessary additional step in your case?

Anyway, hope this helps, and I am sure others will opine about the need or lack thereof of living trusts.
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Rosedala
  |     |   45 posts since 2010
Thanks Marcos, but still there are so many things not definitely determined about this matter... :(
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sunny2
  |     |   4 posts since 2010
I was told recently by Navy Federal CU that making the revocable trust the beneficiary of a CD will enable the successor trustee to redeem the CD with no penalty. I recently opened a 5-year CD for the higher APY of 3.0%. The penalty for early redemption is up to 1 year's interest. If death were to occur before 5 years, the successor trustee could redeem the CD with no penalty, and distribute the funds to the beneficiaries per the terms of the trust.
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Rosedala
  |     |   45 posts since 2010
Sunny2 I hope you're right but this might depend on the institution than to a general rule....
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2
ChrisCD
  |     |   134 posts since 2010
We have run into banks that initially require you to set-up the account as a personal account, especially on-line banks, but then allow you to re-title it.  We have also run into banks that don't want to deal with what they perceive to be a hassle factor.
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9
scubabelle
  |     |   46 posts since 2013
We have accounts titled in our revocable trust with big banks and brokerage houses (such as Bank of America or Morgan Stanley). They're pretty good about it. We also have trust accts with Ally Bank and Melrose CU and Quorum CU. Sometimes the trust thing is a bit of drama. I always call first and see what they'll do and what they require. You have to be patient with the process and paperwork and, sometimes, be a little persistent/pushy. As another member stated, sometimes you have to open in your personal name and then re-title it (make sure they'll do it before you open the acct). Alternatively - what we did with Barclays - they won't title accts in trust but we were able to designate our trust as the beneficiary. Hope that helps! 
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Ally6770
  |     |   4,294 posts since 2010
Are some of the replies mixing up revocable and irrevocable?
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hank
  |     |   110 posts since 2016
yes, it appears the first post mixes them up
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Rosedala
  |     |   45 posts since 2010
Designating my trust as a beneficiary in all institutions is what I have and feel to be easier. I even did this with my IRA accounts. All I do is write them what I have in mind for beneficiaries (same letter to all), enclosing, as it was mentioned, relevant pages of the trust. And of course, urging them to confirm in writing.
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Olive
  |     |   1 posts since 2018
Designating the trust as the beneficiary defeats the purpose of a trust because savings will go into probate (taxable) before they go into the trust.
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Sagegriot
  |     |   10 posts since 2019
I believe beneficiary designations bypass probate. Designating a trust as beneficiary is generally done for other reasons than avoiding probate.  Sometimes a trust is named as contingent beneficiary with spouse as primary. 
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Shruti Gupta
  |     |   1 posts since 2017
Synchrony bank does trust accounts online. Good interest rates compared to local banks
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highrate
  |     |   46 posts since 2016
some banks have them but dont even know they have them. I went to visions and I was told multiple times that they dont offer them.  Then I called corporate hq and spoke to someone in the trust dept and they told me to go in to the branch and tell them to set up a totten trust which is basically the same thing , and then they knew what to do
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DepositGuy835
  |     |   21 posts since 2015
Just make your revocable living trust the beneficiary.
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RickZ
  |     |   218 posts since 2010
I'm pretty sure that all of the big banks allow trust accounts. I have a trust account at Alliant Credit Union. It was relatively easy to set-up (every financial institution is going to want copies of the trust, etc.) and Alliant is definitely one of the better financial institutions out there.  Membership may require a $10 donation to their selected charity if you don't otherwise qualify.
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HollyHolly
  |     |   89 posts since 2015
Almost all the banks and credit unions accept rev. trust accounts. However, they all require at least 5 pages of the trust doc - first page, grantor clause, powers clause and signature and notary pages.
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Rosedala
  |     |   45 posts since 2010
Hi bradmoe, I know this thread is over a year old and I'm sure you've resolved this by now, but wanted to tell you that I made a Revocable Trust with an attorney years ago, and sent to each of my investment institutions a letter telling them to consider my Trust a beneficiary, enclosing the First and 2 Last Pages of the Trust. I repeat this with each account I open at a different institution.
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Ally6770
  |     |   4,294 posts since 2010
For an account to be put in a trust it has to be titled to the trust. The financial institution also requires a dated copy of the trust with the signatures and the notary etc. If the account has no beneficiaries then a pour over will in the trust will put it in the trust but in my state it will still have to go through probate to be transferred to the trust.
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Rosedala
  |     |   45 posts since 2010
Oh Ally how terrible that they should put your Trust through the probate!!! In NYC, some institutions insist I fill in info on the Trust, but many others just accept that my Entire Trust be my beneficiary. I understand each state may have different laws but to put a Trust through probate is really low!!!
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Ally6770
  |     |   4,294 posts since 2010
They do not put the trust through probate but they put the account with no beneficiaries listed through probate. The accounts have to be titled to the trust with the date of the trust in the account title.  The trust only comes into play with probate with accounts that have no beneficiaries and the pour over will transfer it to the trust. Check in your state if all accounts, house, stocks, bonds etc has to be titled to the trust.
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Rosedala
  |     |   45 posts since 2010
Yes, also in NYC one has to title the accounts to the Trust and one has to recite the entire name of the Trust each time one calls them for something (a pain as it's usually a long name!). I suppose they do it automatically when they receive my letter of instructions enclosing the mentioned pages of the Trust. And yes, whatever remains out of the Trust will get the pour over Will. However, I better check out my institutions to make sure that it's still the same about NOT going through probate any left overs in the Will that I might've forgotten to give a beneficiary. One never knows...So thanks a lot for reminding me. :)
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paoli2
  |     |   2,641 posts since 2011
I don't understand why anyone would need a Revocable Trust with a bank when all we have to do is make sure we have a beneficiary on each account and it goes to them without probate. You also don't need a Trustee if you just make the CD Totten or just put a beneficiary. I like to keep things as simple as possible.
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Ally6770
  |     |   4,294 posts since 2010
There are many assets that people have that they do not want to go through probate. Anything that goes through probate is open to the public. That is why they have trusts.
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gbtexas
  |     |   78 posts since 2013
There are multiple reasons for a trust, a grantor trust, for example (there are various types of other trusts I could have used, but this was the simplest and best for my purpose). With a grantor trust, the money essentially belongs to the grantor. What I did was set one up myself using software available for the purpose of reserving $ for college education for my grandkids. I knew that the grantor, my son, wouldn't raid the trust by removing me as the trustee and appointing himself or someone else to be trustee. This is but one small example of why trusts are used. Some lawyers specialize in trusts and can get very well compensated.
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BrendaW
  |     |   1 posts since 2019
Note sure how many are moving money due to FDIC limatation, so I thought I would share some informaiton. Yesterday I called the FDIC trust division and confirmed the following: Grantor, still living, along with all named beneficiaries of the trust are insured up to $250,000, or a total of $1,250,000-
I also learned that the bank the funds are held at need only have the accout in the Trust name, they do not have to have the trust docs on file. The FDIC would get them from the trustee, if the bank were to fold. This is helpful if you can find a bank with a great rate and have several Beneficiaries.
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Rosedala
  |     |   45 posts since 2010
This is good info Brenda, thank you. However, as to this paragraph:
"I also learned that the bank the funds are held at need only have the account in the Trust name, they do not have to have the trust docs on file."
My checking account bank wouldn't accept my Trust name unless I gave them a copy of my Trust for them to keep in their files...I fought them for months then opted to give in or this money would go through Probate...
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Ally6770
  |     |   4,294 posts since 2010
If you have a formal trust most banks require to have a COPY of that trust on file. For a ITF or POD (informal trust) it is not required.
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111
  |     |   672 posts since 2019
In many states, something called a "certificate of trust" is often created when a lawyer (or a very knowledgeable layperson) sets up a formal trust. This is an extract of the trust, normally a much smaller document, that includes only the sections of the trust the bank (or other financial institution) needs to know about. A copy of this "certificate" can be given to the bank, and that should satisfy them. Often states whose laws specify such a certificate will have statutes that say something like "A trustee may furnish to a person other than a beneficiary a certification of trust instead of a copy of the trust instrument. The certification of trust must contain the following information: ..." etc. etc.

Much of the law regulating trusts is state law, so YMMV.
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vic1
  |     |   3 posts since 2018
Does anybody has a list of banks, credit unions and the like that allow for trust accounts, particularly for Internet-based accounts? I am sure all of those with physical branches do and it would be no problem to open one in person.

But what about on-line operations? People below mentioned some but no list. For instance, I wonder if CIT bank allows that. I can't find an answer. They now has pretty attractive savings rates so...
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Rosedala
  |     |   45 posts since 2010
Hi Vic1, I don't think there's a list of institutions accepting Trust accounts either on land or online. When you've chosen an institution and you fill out your application, just enter your Trust Name, then at the end, if you are the trustee, sign as "John Doe, Trustee". Or you might want to ask them before applying whether they accept it.
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JimmyAD
  |     |   1 posts since 2018
Hi,
I am trying to open same account for my Mom but in some banks we are being told that we need to get our lawyer involved. Is that truth? To me it seems like simple account why lawyer which wants to charge us $2000 for this needs to be involved?
Is this something i can open without lawyer getting involved?

Thanks Jimmy.
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Ally6770
  |     |   4,294 posts since 2010
If you are the rep of your mom or POA, there are forms that your mom and you or others must sign. The forms your mother signs lists what you or others are allowed to spend this money on. You sign forms acknowledging you understand what she has signed and you or others will abide by these restrictions under penalty of the law which in my state is 10 times the misappropriations, plus a jail sentence. You also may be required to save receipts and bills associated with any money spent from this account. These papers are filed with the signature cards. Whether these forms have to be from a lawyer or from a the library or from other source depends on your state and banking laws.
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