When a trust owns the account, its governing document — not an IRS contribution schedule — sets the rules. Custody here is about faithful administration within those terms.
Key takeaways
- Held in the name of a trust under its governing document.
- The trustee directs the account within the trust’s terms.
- Tax and administration depend on the trust type and its terms.
What it is
Custody for revocable and irrevocable trusts. The account is a structure; the investments it holds are separate and carry their own risks.
Who it’s for
- Established revocable or irrevocable trusts
- Trustees administering trust investments
- Estate plans holding alternative assets
- Families coordinating trust and retirement assets
How it works
- Provide the trust document and trustee information.
- Fund and title the account in the trust’s name.
- The trustee administers the account per the trust terms.
Eligibility
Available to established trusts with a valid governing instrument and trustee.
Contributions and funding
Funded by the grantor or trust assets; no standardized contribution limits.
What it can hold
Publicly traded securities and, where supported, alternative assets, consistent with the trust document.
Taxes and reporting
Trust taxation varies widely by type and terms; work with the trust’s advisors. Requires legal and tax review
Withdrawals and distributions
Governed by the trust document and applicable law.
How Investor Services custodies it
Investor Services custodies assets in the trust’s name and processes the transactions the trustee directs, consistent with the trust document. Interpreting the trust and its duties is the trustee’s role, with counsel.
Risks and limitations
- Terms of the trust govern all activity
- Fiduciary duties apply to the trustee
- Investment risk, including loss of principal
Common mistakes to avoid
- Titling assets outside the trust’s name
- Acting beyond the trustee’s authority
- Overlooking the trust’s own tax obligations
- Assuming retirement-account rules apply to the trust
Frequently asked questions
What do you need to open one?
The trust document, trustee identification, and tax details.
Can the trust hold alternatives?
Where the trust permits and the platform supports it.
Who directs the account?
The trustee, within the trust’s terms.
Educational only. This page is general information, not individualized investment, legal, or tax advice. Rules depend on your account type, transaction, tax year, and circumstances — consult a qualified professional.