Yes, a trust may be added as a beneficiary to a checking or savings account. Under Illinois law, a savings or checking account holder may convert their traditional account into a “payable on death” account by signing an agreement with their bank providing that on the account holder’s death, the account shall be paid to or held by a designated beneficiary. The law defines the term “beneficiary” to include a trust.

For resources related to our guidance, please see:

• Illinois Trust and Payable on Death Accounts Act, 205 ILCS 625/4 (“If one or more persons opening or holding an account sign an agreement with the institution providing that on the death of the last surviving person designated as holder the account shall be paid to or held by one or more designated beneficiaries, the account, and any balance therein which exists from time to time, shall be held as a payment on death account and unless otherwise agreed in writing between the person or persons opening or holding the account and the institution.”)

• Illinois Trust and Payable on Death Accounts Act, 205 ILCS 625/2 (“‘Beneficiary’ includes . . . a trust . . . .”)