Taylor Scott
Ally Bank offers fee-free trust bank accounts with no monthly maintenance fees, overdraft fees, low balance fees, or other significant fees. A deposit account can be opened by a trustee for the benefit of a beneficiary, protecting assets during and after the grantor's life. To open an account, a Certification of Trust or a written Trust agreement with a Social Security number or Tax ID number is required.
| Characteristics | Values |
|---|---|
| Types of accounts | Checking accounts, savings accounts, CDs and money market accounts |
| Number of Trustees | Multiple Trustees allowed |
| Owner | Only one owner allowed |
| Documents required | Certification of Trust, Trust agreement with a Social Security number or Tax ID number, signature page with the Grantors' and Trustees' signatures |
| Address update | Change of Address Form (PDF) to be sent via Secure Message Center or mailed to Ally Bank, P.O. Box 951, Horsham, PA 19044 |
| Contact | 1-877-247-2559 |
| Fees | No fees specific to trust accounts, no monthly maintenance fees, no overdraft fees, no low balance fees |
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What You'll Learn
No fees for trust accounts
When it comes to trust accounts, Ally Bank is a great option as it does not charge any fees specific to these types of accounts. This means that you can open and maintain a trust account without incurring any additional costs, making it a very attractive proposition.
Ally Bank's no-fee policy for trust accounts extends to a wide range of account types, including checking accounts, savings accounts, CDs (Certificates of Deposit), and money market accounts. This flexibility allows you to choose the type of account that best suits your needs without worrying about extra charges.
The absence of fees for trust accounts at Ally Bank is particularly advantageous for those looking to set up either revocable or irrevocable trusts. This is because the bank offers multiple options for both types, ensuring that you can find the right structure for your specific situation.
In addition to the absence of trust-specific fees, Ally Bank also does not charge monthly maintenance fees, overdraft fees, or low-balance fees for any account. This means that you can manage your trust's finances without facing unexpected charges, providing peace of mind and helping to keep costs predictable.
While there are no fees specific to trust accounts, it is important to note that certain actions or requirements may necessitate fees. For example, if you need to make changes to the trust's information, such as adding or removing trustees, you will need to complete and submit the necessary forms. Similarly, changing the address associated with the trust account requires submitting a Change of Address Form, which may involve mailing costs.
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Revocable or irrevocable trusts
Ally Bank offers deposit accounts for revocable or irrevocable trusts. While the bank does not specify the differences between the two, it is important to understand the differences between these two types of trusts before deciding which one to open.
A revocable trust is a living trust that outlines the assets you want to give to a beneficiary and how the assets will be distributed. One of the biggest advantages of a revocable trust is the ability to make changes to it after it has been created. This means you can update your beneficiaries, the assets included, and when the contents of your trust will be distributed. It is good practice to review a revocable trust every three to five years to ensure that the beneficiaries are still the same and that the trust still contains the assets you want in it. However, because the grantor retains control over a revocable trust, the assets they transfer to it are not shielded from creditors. If the grantor is sued, the trust assets can be ordered liquidated to satisfy a judgment. Additionally, when the grantor of a revocable trust dies, the assets held in trust are subject to state and federal estate taxes.
On the other hand, an irrevocable trust is a trust whose terms are set in stone once the agreement is signed. It can also be a type of living trust, but it cannot be altered. There are some rare exceptions that allow for changes if all the beneficiaries agree to them, but the proposed updates must go through a lengthy approval process, which can include going before a judge. Irrevocable trusts are more complicated to set up than revocable trusts, but they offer the benefit of protecting assets from creditors and legal judgments. Additionally, irrevocable trusts remove the grantor's taxable estate assets, meaning they are not subject to estate tax upon death. However, if the circumstances change, the grantor will generally lose any chance of accessing the money held in an irrevocable trust.
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Trust documents required
To open an Ally Bank account in the name of a Trust, you must first apply for an account online. When completing the application, indicate that the account is for a Trust before proceeding to the next steps.
Next, you'll need to provide certain sections of the Trust agreement, Grantor and Trustee information. You can also complete the Account Application for Trusts (PDF) and submit it to the bank.
The following Trust documents are required to open an account titled in the name of a Trust:
- A Certification of Trust (sometimes referred to as a Trust Abstract or Affidavit of Trust, depending on the state), or a written Trust agreement with a Social Security number or Tax ID number. This must be set up outside of Ally Bank and may require the services of an attorney.
- If a Certification of Trust is not available, include the following pages of your Trust agreement:
- Pages describing the Trust, including the formal names of the Trust, Grantors, and Trustees.
- Provisions related to Trustee powers and incapacity or death of a Trustee.
- The signature page with the Grantors' and Trustees' signatures.
It is important to note that you do not need to give your bank a copy of your trust. However, you may need to provide certain information or documents, such as a trust certificate, to satisfy the bank's requirements. Additionally, if you are refinancing an asset in the trust, you must give the bank a copy of the asset title.
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Trustee maintenance form
This form is used to make changes to the name of the Trust or add/remove trustees on an Ally Bank account titled in the name of a Trust.
To fill out the form, you will need to provide the following information:
- The name of the Trust
- The names of the Grantors and Trustees
- Provisions related to Trustee powers and incapacity or death of a Trustee
- Signature of the Grantors and Trustees
You can also make changes to your contact information online by logging in and going to Profile and Settings. From there, you can choose to edit your personal information.
If you need to update the address associated with your trust account, you will need to complete the Change of Address Form and send it via secure message or fax, or print and return it to the following address:
Ally Bank
PO Box 951
Horsham, PA 19044
For any further questions, you can call Ally Bank's customer support at 1-877-247-2559.
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Trust account options
To open a trust account, you will need to provide certain sections of the trust agreement, grantor and trustee information, and a Certification of Trust (or a Trust Abstract or Affidavit of Trust, depending on the state). Alternatively, if a Certification of Trust is not available, you will need to include pages describing the trust, provisions related to trustee powers and incapacity or death of a trustee, and the signature page with the grantors' and trustees' signatures.
Ally Bank does not charge any fees specific to trust accounts, including no monthly maintenance fees, overdraft fees, or low balance fees.
In terms of other trust account options outside of Ally Bank, Betterment is a good option for investment trust accounts, offering both revocable and irrevocable trusts with personal investing and cash accounts. Betterment Cash Reserve accounts earn a 4.00% variable APY on all balances and are FDIC-insured. Alliant Credit Union is another option, offering four account options for trusts, including a high-yield savings account, supplemental savings account, high-yield checking account, and CDs. Fidelity, despite being a brokerage firm, also offers trustee services and multiple trust account options.
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Frequently asked questions
No, Ally Bank does not charge any fees specific to trust accounts. There are no monthly maintenance fees, overdraft fees, low balance fees or other significant fees for any account.
You will need a Certification of Trust, also referred to as a Trust Abstract or Affidavit of Trust, or a written Trust agreement with a Social Security number or Tax ID number. This must be set up outside of Ally Bank and may require the services of an attorney.
Yes, you can apply online. You will need to indicate that the account is for a Trust and provide certain sections of the Trust agreement, Grantor and Trustee information. You can also complete the Account Application for Trusts (PDF) and submit it.
