Account In Trust

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DEFINITION of 'Account In Trust'

An account that is managed by one party for the benefit of another. It is sometimes called an account held in trust, and the trust relationship can be either explicit or implied. Accounts-in-trust are typically set up for minors, and transfer of ownership will occur when the minor reaches legal age.

BREAKING DOWN 'Account In Trust'

The person managing an account in trust is a fiduciary to the ultimate owner or beneficiary of the account. A good example of such accounts are accounts managed by adults for minors, such as Uniform Transfers to Minors (UTMA) accounts. The term can also be used generically for any trust account, regardless of whether there is a formal trust agreement.

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RELATED FAQS
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