Trust Account Law and Legal Definition
A trust is a fiduciary relationship in which one party, known as a trustor, gives another party, the trustee, the right to hold title to property or assets for the benefit of a third party, the beneficiary. A trust account is a savings account deposited in the name of a trustee. The trustee controls the account during his/ her lifetime. After trustee’s life time, the balance is payable to a prenominated beneficiary.
A trust account covers all types of accounts in a trust department. For example: estates, guardianships, and agencies. The person or institution managing trust accounts is known as the trustee or administrator.
