| Naming a trust as beneficiary of an account…read on:
CLIENT QUESTION:
You previously recommended that I should have my trust be the beneficiary of my bank accounts, for example:
“50% to the Trustee of the XXX trust FBO XX under the XXX Family Trust dated YY.”
Most of my banks accepted this. However, Capital One will not accept this.
They say that the beneficiary has to be a person and that no trust can be referenced. They only want the name, address, and SS #.
I don’t know why you wanted the beneficiary stated as above. Can you explain the reason for the wording? Should I just go to a bank that will accept your wording?
I enjoy your “Listen to Lawrence to Letters”.
MY RESPONSE:
The purpose behind my advice was to have the trust be the named beneficiary of an account. If that is the goal, then the beneficiary of the account must be the trust. For whatever reason, we decided that it was best for you not to put that particular account in the name of the trust while living…but we wanted it to go to a trust upon death. The way I suggested you do it recognizes that it is the trustee of the named trust that takes title (as trustee), not the trust itself.
If the bank did not like my form, ask them what form they would accept to achieve the desired result. If they will not cooperate in any way, my best advice is to switch banks. |
