At a glance
- Existing account
- Converted in place with the same account number, unless the taxpayer ID changes.
- Main form
- Schwab One Trust Account Application (APP10600). Online for some living trusts.
- Trust documents
- Title or first page plus all signature pages, or all pages of a certification of trust.
- Signatures
- No medallion on the application. Notary only in certain states, and not for same-person revocable trusts.
- Retirement accounts
- Not retitled. A trust is named on the IRA beneficiary form, by percentage.
Before filling in any form, settle the facts every institution asks for: see what to gather first.
Which form to use
The Schwab One Trust Account Application (APP10600) does two jobs. It opens a new trust account, or it converts an existing Schwab or Schwab One account into a Schwab One trust account and keeps the same account number. If the taxpayer identification number changes, a new account must be opened instead.
Schwab also takes the application online, but only for revocable living trusts where all grantors, current trustees and beneficiaries are the same people. Schwab's own example is a married couple who are the grantors, trustees and beneficiaries of their trust. Every other trust uses the downloadable application.
If some of the people on the existing account will not be trustees of the trust account, everyone on the existing account signs a letter of authorization asking Schwab to remove those owners and convert the account.
What Schwab accepts as proof of the trust
For a revocable trust, Schwab asks for the title page or first page of the trust and all signature pages. Instead, all pages of a certification of trust, memorandum of trust, affidavit of trust or abstract of trust can be submitted. If the trustees have changed since the trust was signed, add the page that names or confirms the successor trustee.
Schwab asks that the entire trust document not be attached unless it requests it. The trustee certification is a section of the application itself, not a separate form.
Notarization and signature guarantees
The application does not ask for a medallion signature guarantee.
It requires notarized trustee signatures when the trust is governed by the laws of certain states, which the application lists, or by the laws of a U.S. territory. The notary requirement does not apply to a revocable trust where all grantors, current trustees and current beneficiaries are the same people.
Whether the letter of authorization used to remove an owner needs a signature guarantee is not stated on the application. Ask Schwab before the client signs.
What the conversion changes
A converted account keeps its number and its holdings, so nothing is sold. Several features do not carry over:
- Transfer on death. Trust accounts cannot carry a TOD designation, and an existing TOD is revoked when the account converts. After conversion, the trust's terms govern who receives the account.
- Trading authority and powers of attorney. These have to be set up again and signed by all trustees.
- Options approval. A new options or margin form signed by all trustees is needed.
Schwab does not publish a processing time for a conversion.
Later trustee changes
Adding or removing a trustee on a Schwab One trust account uses the Trustee Change Form (APP32257). If the change also changes the taxpayer ID, Schwab opens a new account and the assets move to it.
IRAs and other retirement accounts
Schwab's Beneficiary Designation Form for IRA and 403(b)(7) Accounts (APP10149) lets a trust be named as a primary or contingent beneficiary, with the full trust name and date. A trust can be given a percentage only; per stirpes and per capita are options for individual beneficiaries.
IRAs, 401(k)s and other retirement accounts are not retitled to a trust. They are owned by one individual, and changing the owner can be treated as a distribution. Where a trust is meant to receive a retirement account, it is named on the institution's beneficiary form instead. Naming a trust has significant tax consequences, so the estate attorney and tax advisor should confirm the designation before it is submitted. See naming a trust as IRA beneficiary.
Accounts held through an advisor
The forms above are Schwab's retail forms. Accounts held through an independent advisor on Schwab's advisor platform generally use advisor-channel forms, which are not public. Older advisor versions of the trust application have differed from the retail form on which trust documents Schwab accepts, so confirm the current requirement with the service team rather than relying on the retail form.
Common questions
Can I convert a Schwab account to a trust and keep the same account number?
Yes. Schwab's trust account application converts an existing Schwab or Schwab One account to a trust account with the same number, unless the taxpayer identification number changes.
Can a Schwab trust account be opened online?
Yes, for revocable living trusts where all grantors, current trustees and beneficiaries are the same people. Other trusts use the downloadable application.
Does Schwab need the whole trust document?
No. Schwab asks for the title or first page and all signature pages, or all pages of a certification, memorandum, affidavit or abstract of trust, and asks that the entire trust not be attached.
What happens to a transfer-on-death designation when a Schwab account becomes a trust account?
It is revoked. Trust accounts cannot carry a TOD designation.
Forms and sources
Every fact on this page comes from Schwab’s own published forms and pages, linked below. Form numbers are shown without revision codes, which change about once a year. Use the current version from Schwab.
Bancroft is not affiliated with or endorsed by Schwab. The name is used only to identify the institution. Requirements change; confirm with Schwab before submitting forms. This page is general information about each institution’s published process, not legal or tax advice about any household’s accounts.