Planning for the future is one of the most caring things a person can do for their loved ones. A trust, similar to a will, is a way to designate what happens to a person’s belongings after they pass away. Trusts are designed to protect assets during and after the Grantor’s life, generally saving the time and expense of the probate process. Trust accounts are a way to set up a bank account following the specific instructions of the trust document—and at MVSB, local experts are ready to help.
While some financial institutions may not open deposit accounts under a trust, MVSB regularly assists customers with this process. As a mutual community bank, MVSB takes pride in offering personalized service and guidance to help families manage their finances with confidence and care.
How a Trust Works
When setting up a trust (also known as a trust fund), the grantor creates and transfers assets—such as money or property—to the trust. The grantor decides what happens with those assets and when. For example, they may designate that funds be distributed to beneficiaries (the people or organizations receiving the assets) at a certain time or for specific purposes. The trust is managed by a trustee, who ensures that the terms of the trust are followed.
There are two main types of trusts: revocable and irrevocable.
- Revocable Trust
A revocable trust, also called a revocable living trust, offers flexibility. It is set up and managed while the grantor is living, and they can modify the terms or move assets in and out as needed. The grantor typically serves as the trustee and names a successor trustee to take over upon their passing. When that happens, the trust becomes irrevocable. - Irrevocable Trust
An irrevocable trust cannot easily be changed once established. The grantor transfers ownership of the assets to the trust, creating a separate entity. This structure can provide tax advantages and protect assets from creditors or lawsuits. It can also help beneficiaries avoid paying estate taxes on inherited property.
What You Need to Open a Trust Account
Once a legal professional has prepared the trust documents, we can help open the appropriate account with the following:
- Government Issued Photo ID such as a Driver’s License or Passport
- An external Certification of Trust or copy of the formal Trust Agreement
- Trustee(s) TIN and, if applicable, Trust EIN
Types of Accounts for Trust Funds
We offer several account options to meet the needs of each trust:
- Checking: Ideal for trusts that require regular access to funds. Explore our suite of personal account options designed just for YOU! From feature-rich offerings to keeping it simple – find the perfect solution to complement your lifestyle. https://www.mvsb.com/personal/checking/
- Money Market Account: https://www.mvsb.com/personal/savings-money-market-cds-iras/
- Savings Account https://www.mvsb.com/personal/savings-money-market-cds-iras/
- Certificate of Deposit (CD) https://www.mvsb.com/personal/savings-money-market-cds-iras/
Our bankers use the legal trust document as a guide to set up the account according to the grantor’s wishes. While bankers cannot provide legal advice, they ensure that the account is opened correctly and efficiently.
How to Get Started
Because trust accounts can be complex, we encourage you to visit a local branch or schedule an appointment with a banker to discuss their options. Our caring, knowledgeable team is ready to help your family plan for the future and manage their trust, estate and other fiduciary accounts with confidence.
