Trust accounts

Looking for a way to leave assets to your loved ones? Consider opening a trust account.

What is a trust account?

A trust account is a legal arrangement in which the grantor allows a third party, the trustee, to manage assets on behalf of the beneficiaries of the trust. A trust can provide legal protection for your assets and make sure those assets are distributed according to your wishes.

Once the trust has been established, an investment account can be created. Although the beneficiaries hold the right to benefit from the trust, they have no authority to act on behalf of the trust assets.

Things you should know before you get started

Minimum investment amounts

You'll need $3,000 to buy most Vanguard mutual funds, though there are some with lower or higher minimums.*

And you can invest in any ETF (exchange-traded fund) for the price of 1 share, which will vary throughout the day.

Other companies' funds may have different minimums, so be sure to check their prospectuses. And like ETFs, minimums for individual stocks, certificates of deposit (CDs), and bonds are based on their current market prices.

Taxes

Your investment earnings—the money your money makes—will likely be taxed at the federal, state, and sometimes local levels. The tax rate depends largely on your income and how long you hold the investment.

You could shrink that tax bill by choosing tax-efficient investments.

Expectations for investment returns

Trying to find the fastest road to riches could put your hard-earned savings at risk just as quickly.

Particularly when making a shorter-term investment—less than 7–10 years, for example—you'll want to choose the combination of bonds and stocks that strikes the right balance between risk and reward.

Other investment costs

Some investments have obvious costs—like trading commissions and service fees. But keep a keen eye on expense ratios too. While they don't show up on your statement as a debit, they can take a serious bite out of your savings.

At Vanguard, you'll enjoy no commission to trade ETFs, stocks, and Vanguard mutual funds online. Our account service fees are avoidable,** and our expense ratios are 82% less than the industry average.† Put it all together, and you keep more of your money in your account, where it belongs.

Expense ratio

The annual operating expenses of a mutual fund or ETF (exchange-traded fund), expressed as a percentage of the fund's average net assets. It's calculated annually and removed from the fund's earnings before they're distributed to investors, directly reducing investors' returns.

An expense ratio includes management, administrative, marketing, and distribution fees. It doesn't include trading or sales commissions, loads, or purchase or redemption fees.

Open a trust account in just 4 steps

It's easy to open a trust account online, and it takes just a few minutes.

Step 1
Legally establish your trust

For trust accounts, you’ll need to consult with an attorney to draft the details of your trust. Ensure this step is completed before starting your application; otherwise, we won’t be able to open your trust account. Once you have your official trust documents, create a digital copy of them to include with the application.

Step 2
Complete your application online

1. Log in to your Vanguard account and follow the instructions to open a trust account.
   Note: If you’re a new client, call us at 877-662-7447.
2. Have these 3 required items on hand:

• A legally established trust with your attorney.
• A completed trust account application, including personal information of the trustees, the type of trust, the date of the trust, and the trust’s tax identification number.
• Supporting legal trust documents (as detailed below).
  

For a trust under agreement:

• The trust’s name and date.
• The current trustees’ names.
• All signature pages of the trust document.
  

• The creation of the trust.
• The trustees’ names.
• The testator’s (decedent’s) signature.
• Evidence that the will was filed with the probate court (e.g., a court stamp, a copy of the letters testamentary, or the court document appointing the trustees).
  

• Successor trustees: If the trust ownership is being/has passed to you from someone else, provide additional documentation as to why the original/current trustee is no longer acting (i.e., death certificate, letter of incapacitation).
• Sub-trust (e.g., marital trust, bypass trust, or generation-skipping trust): If this type of trust is being created underneath or because of an existing trust, include relevant pages from the trust documents that include the provision outlining the creation of the sub-trust and trustees’ names.

Note: Once we receive your completed application, it will take 5 business days to review, process, and open your account. Your request will be delayed if you don’t include all the requested documents and information.

Step 3
Fund your account

If it's coming from your bank, provide your bank account and routing numbers for an electronic transfer or your bank name and wire date for a wire transfer.

If it's coming from another investment company …

Step 4
Select your investments

Choose from more than 150 Vanguard mutual funds and 70 Vanguard ETFs®.

You can also complement your portfolio with funds and ETFs from hundreds of other companies, as well as individual stocks, CDs, and bonds.

Ready to invest in a fund?

New to Vanguard or looking to consolidate your savings?

Already a Vanguard client? Log in and add a plan to your account.

Ready to invest in a fund?

New to Vanguard or looking to consolidate your savings?

Already a Vanguard client? Log in and add a plan to your account.

*Minimum initial investment requirements for most mutual funds range from $1,000 to $100,000 depending on the fund and the share class, but some may be higher. Details are provided in each fund profile.

**A $25 annual account service fee is charged for all Vanguard Brokerage Accounts, as well as for each fund held in a legacy mutual fund-only account by clients with less than $5 million in qualifying Vanguard assets. For brokerage clients, Vanguard Brokerage doesn't charge the fee to clients who elect e-delivery of statements and the annual privacy policy notice; confirmations; reports, prospectuses, and proxy materials; and notices, amendments, and other important account updates. In addition, Vanguard Brokerage doesn't charge the fee to clients with at least $5 million in qualifying Vanguard assets. See the full commission and fee schedules for details on additional exclusions.

†Vanguard average ETF and mutual fund expense ratio: 0.08%. Industry average ETF and mutual fund expense ratio: 0.44%. All averages are asset-weighted. Industry average excludes Vanguard. Sources: Vanguard and Morningstar, Inc., as of December 31, 2023.

You must buy and sell Vanguard ETF Shares through Vanguard Brokerage Services (we offer them commission-free online) or through another broker (who may charge commissions). See the Vanguard Brokerage Services Commission and Fee Schedules for limits. Vanguard ETF Shares are not redeemable directly with the issuing Fund other than in very large aggregations worth millions of dollars. ETFs are subject to market volatility. When buying or selling an ETF, you will pay or receive the current market price, which may be more or less than net asset value.

Investments in Target Retirement Funds are subject to the risks of their underlying funds. The year in the fund name refers to the approximate year (the target date) when an investor in the fund would retire and leave the workforce. The fund will gradually shift its emphasis from more aggressive investments to more conservative ones based on its target date. An investment in a Target Retirement Fund is not guaranteed at any time, including on or after the target date.

All investing is subject to risk, including the possible loss of the money you invest.

Tax rates will vary based on the individual and on changing tax rates. You may wish to consult a tax advisor about your situation.