Introduction

Irrevocable trusts are separate legal arrangements whose assets generally bypass probate; yet banks and brokerages still impose specific controls once they learn a grantor has died. Institutions verify who the acting trustee is, confirm the trust’s tax identity, and update account authority before allowing transactions. This guide explains those steps, the documentation most banks require, common pitfalls, and how Sunset streamlines coordination with financial institutions so trustees and families avoid avoidable delays.

Understanding irrevocable trust accounts

Definition and separation from probate: Under FDIC rules, deposits for most revocable and irrevocable trusts are insured in the Trust Accounts category; the trust is recognized as the accountholder, distinct from the decedent’s probate estate. Account titling and the bank’s records must identify the account as a trust.
Who is the bank’s “customer”: For CIP/BSA purposes, a trust account’s “customer” is the trust itself. Banks must verify the trust and, based on risk, may obtain information about individuals with authority or control (e.g., trustee signers).
Post‑death insurance nuances: FDIC insurance can change after a death (e.g., six‑month grace period for an owner’s death in certain trust structures). This is a deposit‑insurance rule and does not govern distribution, which remains under the trust.

What happens at the bank after a death

Once a bank is notified of a grantor’s or trustee’s death, typical steps include:

Place a temporary restriction: Many institutions restrict disbursements and changes until documentation is reviewed, to prevent unauthorized activity and to align with CIP/AML controls.
Verify the acting trustee(s): Institutions confirm successor or co‑trustee authority against the trust instrument or a certification of trust permitted by state law (examples below).
Update the account’s authorized signers: The bank updates who may transact, consistent with the trust and any co‑trustee signature requirements.
Confirm tax identity: If a revocable grantor trust became irrevocable at death, the trust generally needs a new EIN before the bank will change the TIN on file.
Resume account activity: After approval, routine activities (payments, distributions, investments) can continue per the trustee’s powers.

Documents banks commonly require

Financial institutions vary, but requests typically include the items below. Wells Fargo’s public checklist for “Trust” accounts, for example, calls for a death certificate and a certification naming the successor trustee, and in some cases the trust section appointing that successor.

Document	Who issues it	Why banks ask for it
Certified death certificate	Vital records authority	Confirms date of death; triggers post‑death procedures
Certification/abstract of trust	Trustee (often notarized)	Establishes existence of the trust, current trustee(s), powers, revocability status, and signature authority without exposing dispositive terms; often preferred for privacy
Trust excerpts (specific pages)	Trustee provides excerpts	Where permitted by statute, banks may ask only for sections naming trustees/powers if needed to verify authority
Government‑issued ID for trustee(s)	State/federal	CIP/identity verification of authorized signers
EIN for irrevocable trust (if applicable)	IRS	Needed if a grantor trust became irrevocable at death; bank updates the account TIN
Bank/brokerage proprietary forms	Institution	Aligns internal records; e.g., trustee certification of investment powers for brokerage accounts

References: State certification‑of‑trust statutes authorize third parties to rely on a trustee’s certification and, in some cases, limit demands for full trust copies while allowing targeted excerpts to confirm authority. For example, California and Texas have statutes permitting this principle. Brokerages may also require firm‑specific trustee certifications.

Typical delays and how to avoid them

Common friction points:

Missing or outdated successor‑trustee information: If the named successor has died, is unreachable, or declined to serve, institutions cannot update authority until the governing instrument or court appointment resolves succession.
Name/TIN mismatches: Account title, trust name, and TIN must match bank records for insurance and CIP purposes. Ensure consistent naming conventions when providing certifications.
Requests for full trust documents: Even where a certification is sufficient by statute, institutions may lawfully request narrow excerpts designating trustees and powers. Some statutes recognize this limited request.
No EIN when required: If a revocable trust became irrevocable at death, obtain the new EIN before asking the bank to change tax reporting.
Co‑trustee signature rules: Internal policies enforce the trust’s signature requirements (e.g., both trustees must sign), which slows processing unless documented otherwise in the certification.

Practical steps to accelerate approval:

Prepare a current certification of trust that lists the acting trustee(s), powers, revocability status, and signature authority; have it notarized when customary in your state.
Collect multiple certified death certificates.
Obtain or confirm the trust’s EIN (if post‑death irrevocable).
Bring government‑issued ID and be ready to complete the institution’s trustee or estate forms.
Verify the exact titling on the account and mirror it in your documents.
For brokerage accounts, complete the trustee‑certification form the firm prefers.

How Sunset streamlines the process

Sunset automates discovery and coordination so trustees do not have to navigate each bank’s process alone:

Automated identification of trust and financial accounts: Our software finds bank, brokerage, insurance, and other financial assets—including trust‑titled accounts—and organizes next steps.
Trustee authority verification: We help confirm successor or co‑trustee authority against the trust instrument or certification, align signature requirements, and prepare institutions’ preferred forms so accounts can be released for proper administration.
Institution coordination under your control: With your approval, Sunset coordinates directly with banks and custodians to update authorized signers and resume permitted transactions under the trust’s terms. Our Terms of Use explain how, with explicit permission, Sunset may act on behalf of an estate or trust to complete discovery and closures, while you retain decision authority.
End‑to‑end estate support where relevant: If the decedent also held non‑trust assets, Sunset generates county‑specific probate documents nationwide, sets up FDIC‑insured estate accounts, and consolidates estate funds for distribution—always separate from trust assets, which remain governed by the trust.
Security, cost, and speed: Families pay nothing; Sunset is funded by bank partners while funds sit in estate accounts. The platform is SOC 2 Type II certified and designed to minimize manual paperwork and duplicate requests.

Giving families confidence and control

Irrevocable trusts avoid probate, but they do not avoid bank verification. Expect temporary restrictions, targeted documentation requests, and signer updates. By preparing a current certification of trust, obtaining any required EIN, and aligning names/TINs with institutional records—and by letting Sunset coordinate submissions—you can reduce confusion, eliminate repeated paperwork, and move forward with compliant administration.

Key references for further reading

FDIC Trust Accounts coverage and record‑title requirements
CIP/customer identification for trust customers
FFIEC BSA/AML Manual—Trust and Asset Management
State certification‑of‑trust examples (California and Texas Probate Codes)
Post‑death EIN needs for trusts
Institution checklist example for trust accounts