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Business Accounts Under Trusts?

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We have a client who owns several business accounts under a corporate DBA. The accounts are titled "ABC Corporation, DBA DEF Company". He also has the Family Trust listed under each account. We are told that he cannot have business accounts under the trust because once a trust, always trust. Will he then need to close and reopen these under the Corporation?

Whether or not the trust can operate a business within the trust would be a matter that could only be determined by a review of the trust documents. However, the trust owning the corporate is no different than Joe and Sam Smith owning the corporation and Joe and Sam Smith would not be listed on the account, except for possibly being authorized signers based on the proper corporate resolution.

First published on 12/13/2020

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