08 July 2026

Do all trusts need a separate bank account?

In most cases, trust money should be kept in a separate trust bank account. 

The purpose is simple: trust money needs to be kept separate from personal money, business money, or money belonging to anyone else. 

This helps trustees manage the trust properly and keep clear records for the beneficiaries. 

 

Why does trust money need to be separate? 

Trustees are responsible for managing trust money in the best interests of the beneficiaries. 

Keeping that money separate supports this responsibility. 

It helps show: 

• What money belongs to the trust 
• What has been paid in 
• What has been paid out 
• Who has authorised transactions 
• How the money has been managed over time 

A separate account also reduces the risk of trust money being mixed with personal funds. 

 

Can trustees use a personal bank account? 

Trustees generally shouldn’t use a personal bank account to hold trust money. 

A personal account is designed for personal funds. 

Using it for trust money can make record keeping harder and may create problems if questions are raised later about what belongs to the trust. 

Even if the trustee keeps careful notes, the arrangement can still become unclear. 

A dedicated trust account gives a cleaner and more appropriate structure. 

 

What about small trusts? 

Even where the trust amount is relatively small, the same principle applies. 

Trust money should still be identifiable and separate. 

A separate account may feel like an extra practical step, but it helps ensure the money is managed clearly from the start. 

The size of the trust doesn’t remove the trustee’s responsibility to keep proper records. 

 

What if there is more than one trustee? 

Where there is more than one trustee, a trust bank account can help make decision-making and oversight clearer. 

It can allow more than one trustee to be named on the account, depending on the bank’s requirements. 

This supports transparency and helps ensure trust money isn’t controlled informally by one person without proper visibility. 

If you want to understand this in more detail, you can read more about whether there can be more than one trustee on a bank account here. 

 

What records should trustees keep? 

Trustees should keep clear records of money coming in and going out of the trust. 

This may include: 

• Bank statements 
• Details of payments made 
• Records of trustee decisions 
• Invoices or receipts 
• Correspondence linked to the trust money 

Good records help show that trustees have managed the money appropriately. 

They also make it easier to answer questions from beneficiaries or other parties where needed. 

 

Why banks may ask for trust documents 

Banks usually need to understand the trust before opening an account. 

They may ask for documents that confirm: 

• What type of trust it is 
• Who the trustees are 
• Who the beneficiaries are 
• Where the money has come from 
• Who has authority to manage the account 

This is part of the bank’s checks and helps ensure the account is set up correctly. 

If you want to prepare for this, you can read more about what documents you need to set up a trust bank account here. 

 

So, do all trusts need a separate bank account? 

In most practical situations, yes. 

A separate trust bank account helps keep trust money clearly identified, properly managed and separate from personal funds. 

It supports good record keeping and helps trustees show that they’re acting responsibly. 

If you need help opening a trust bank account or have a question about what’s required, you can get in touch with us.