Q:

How does a trust account work?

A:

Quick Answer

A trustee manages a trust account on behalf of another person or organization, according to LegalZoom.com. The owner or beneficiary of the trust account then inherits full control when the trustee dies. A trust account may also be for minors who are not competent enough to manage the assets.

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How does a trust account work?
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Full Answer

LegalZoom.com mentions that the trustee has full control over assets in the form of cash, stocks or bonds. A trust account can also be in the form of an estate trust, where the trustee pays for the costs associated with maintaining the property. A trustee can be a family member, accountant or lawyer. That person can make account changes, appoint new beneficiaries or close the trust entirely and transfer the assets to another account. However, the trustee must follow directions from a will or agreement that began the trust.

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