How to Terminate a Family Trust Account

By Anna Assad

A family trust agreement manages the assets the family places into the trust for the benefit of the beneficiaries. The trustee manages the trust in accordance with the agreement's directions and rules. Family trusts often contain bank accounts, such as savings or checking, for money transactions and deposits. A family trust account may be closed by the trustee for various reasons, including to move the funds to another account or as part of the trust dissolution process. Regardless of the reason, the trustee must be the person who goes to the bank to terminate the account.

Step 1

Decide where the account funds are going. If you're closing the account to move the money to another account owned by the same trust, you'll need the funds on a check payable to you as the trustee of the family trust. If you're closing the account because the trust is ending, the check should be in the name of the trust's owners or the person the trust owners chose.

Step 2

Gather the trust account paperwork. Include the papers sent by the bank when the account was opened.

Protect your loved ones. Start My Estate Plan

Step 3

Locate the original trust agreement. Although the bank should have the agreement on file, you may be asked for the original.

Step 4

Go to the bank. Bring at least two forms identification — for example, state identification and an original birth certificate — the trust agreement, and the bank account papers. Tell the clerk you want to close the account. Follow the closure process set by the bank. Tell the clerk to whom he should make out the check for the trust account's balance.

Step 5

Destroy any bank cards or checks associated with the account. Put the closed account statement with the rest of the trust paperwork.

Protect your loved ones. Start My Estate Plan
How to Set Trust Checking Accounts


Related articles

Amending a Living Trust in California

A revocable living trust establishes a plan for trust assets that provides payment to the trust's beneficiaries. A revocable trust can be terminated by the owner while he's still living. One advantage of having a revocable living trust is your ability to change the trust's terms at any time while you're still alive and competent. In California, you can change your revocable living trust by writing an amendment that complies with state law. California's trust amendment laws are found in Sections 15400-15414 of the probate code.

How to Set Up a Blind Trust

People, including judges, politicians and business executives, use blind trusts to avoid conflicts of interest because in a blind trust the beneficiary does not know how the trustee handles the assets of the trust. Lottery winners sometimes use blind trust to preserve anonymity. In other aspects, blind trusts are the same as other types of trusts.

Can a Bank Freeze a Revocable Trust Account?

Trust assets aren't necessarily safe from a lockdown by the trust custodian. A bank that receives a judgment or court order can freeze a trust account until a debt is satisfied. Its authority to do this depends on how the trust is set up, who the beneficiaries are, and whether or not the trust has a "spendthrift" provision designed to stop a beneficiary from wasting money.

LegalZoom. Legal help is here. Start Here. Wills. Trusts. Attorney help.

Related articles

How to Close Bank Accounts for the Deceased Without a Will or Probate

You don't need wills or probate courts to close certain types of bank accounts when original title owners die. You can ...

How to Name a Living Trust

A living trust is a plan in the form of an agreement that manages all the property you place into the trust while ...

How to Make a Family Trust

A living family trust is a plan that controls the assets placed into the trust fund. A revocable living family trust is ...

Rights of the Beneficiary of an Irrevocable Family Trust

An irrevocable family trust is a noncharitable trust set up by the creator, or settlor, for the benefit of family ...

Browse by category
Ready to Begin? GET STARTED