Q: Do I need to set up a separate bank account for a living revokable trust?
I'm setting up a living revokable trust for me and my sister - we are grantors and will be trustees (beneficiary will be a relative upon our death). The only assets funding the trust are 2 real properties (no mortgage/liens) and a few mineral rights (100% owned). Currently, 2 of the minerals are producing royalties (50/50 with my sister), which are roughly $300/mo and depleting. Of course, I will notify the oil/gas producers of the new title change into the trust via quit claim deeds after recorded by the county. The royalty income is for our (grantor's) benefit while we are alive. So, would we have to each set up a separate bank account after the revokable trust and funding is complete? Property taxes are the only expenses (on the real property, of course.). (If it is relevant, I live in TX, sister in NM, assets in OK.)
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A:
It is unclear what you mean with "separate account." For a trust to be property funded (i.e. all assets are moved into the trust name), a trust will need to have a bank account in the trust name.
So presuming you mean "separate account" from your "personal account", then YES. If assets are not funded into the trust, the trustee has no power/"management rights" over those accounts.
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