TN 31 (01-08)

A. Definition

A trust account is one that is set up between two individuals. The account title will name the beneficiary “in trust for” or “trustee for” another individual, such as a son or daughter.

B. Policy

Direct deposit to a trust account does not constitute assignment of benefits.

C. Procedure

Approve a request for direct deposit to a trust account if:

• The beneficiary is legally competent and capable (there is no representative payee), and

• There is no indication that the beneficiary is assigning benefits to the other individual.

D. Trust Agreements

Effective immediately, no direct deposit to a trust agreement will be approved. A trust agreement account is a formal agreement between the beneficiary and an FI that describes how the FI will manage the beneficiary’s funds. It is often in the name of the FI, not the beneficiary.

E. Reference

• Totten trusts, SI 01120.200A.

• Transfer of Benefits to a Trust, GN 00602.075