Can Irrevocable Trust hold Now Accounts?

It can if all of the beneficiaries are eligible to hold NOW accounts. Section 204.130(b)(2) of Regulation D states:

"(2) Pension funds, escrow accounts, security deposits, and other funds held under various agency agreements may also be classified as NOW accounts if the entire beneficial interest is held by individuals or other entities eligible to maintain NOW accounts directly. The Board believes that these accounts are similar in nature to trust accounts and should be accorded identical treatment. Therefore, such funds may be regarded as eligible for classification as NOW accounts."