Setting up a living trust

Estate or trust accounts are set up to provide a safe haven for assets as they are setting up a living trust passed on or used on the behalf of the account beneficiaries. How Do I Set Up an Estate or Trust Bank Account?

How Do I Apply for an Estate Tax Identification Number? What Is the Difference Between a Trust Account and an Escrow Account? The estate account holds funds for a short period of time while settling an estate after the death of the owner of the assets making up the account. A trust contains specific assets, held on behalf of the individual establishing the trust for the use of the beneficiaries of the trust. 1Apply to the IRS for a taxpayer ID number in the estate’s name.

Apply online through the IRS website, or by mail or fax by filling out a Form SS-4, the Application for Employer Identification Number. The mailing address and fax number information for your area of the country are listed on the IRS website. 2Take the taxpayer ID number, a copy of the deceased’s death certificate and a list of bank accounts with account numbers held by the deceased to the bank where you wish to establish the estate bank account. 3Fill out the required forms to open the estate account, presenting the proof required to establish you as the legal entity accountable for the account.

1Establish the nature of the trust that you are creating. The after-death trust comes into effect after your death, with assets transferred into the trust through probate, and is usually included in your will. 2Appoint a trustee or group of trustees to oversee the fund. Pick trusted individuals who will manage the assets for the trust, and follow through on your wishes in establishing the trust. You can choose yourself as a trustee over a living trust, but must also choose a replacement trustee in the event of your death. Make a specific list of the powers of the trustees over the trust assets. 3List the assets used to fund the trust.

Most trust assets are income-bearing or cash assets, but can include such items as stocks and bonds and real estate. 4Have an estate attorney draw up a trust document containing all of the information you provide. Sign the document and transfer the assets to the trust fund. File the document with your state if required to do so. Ask the attorney if your state has such requirements. 5Take the agreement to the bank selected to hold the trust fund bank account. Present the agreement to the banker and open a trust account in the name of the trust.