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Estate Planning Question

A revocable trust, which includes the A&B trusts (one for the credit exemption and the other for the marital deduction) is a very common estate planning tool. Generally to avoid probate, the assets must be in the trust's name.

Some states have Transfer at Death beneficiary forms (T.O.D.) which allow certain assets to pass probate free to the beneficiary. The assets would have to be located in the state that had the T.O.D. law.

If you named the revocable trust a T.O.D. beneficiary ( for example a money market fund) would the fund transfer to the trust on the death of the grantor without going through probate ? Or would the fund have to be in the trust's name ?

Thank you, Michael

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Mike
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I'm not quite sure how, or for that matter WHY, you would go to the trouble of setting up a revocable trust, which becomes irrevocable on the death of the grantor, to put a TOD (or POD for banks) beneficiary on the account. Besides why anyone would want to do this, I would expect the bank or brokerage to ask questions about WHY if you have RT are you naming it as beneficiary instead of just titling the asset in the name of the RT. Remember, RTs are transparent while the grantor is alive.

But to answer your question I can't see WHY it wouldn't work - but again, its like trying to play the lottery number 333 in a boxed configuration, it makes no sense.

Gene E. Utterback, EA, RFC, ABA

Reply to
Gene E. Utterback, EA, ABA

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