When your estate plan includes a trust with the goal of avoiding probate, it is important that each of your financial accounts are updated to accomplish that goal. Last week we discussed savings bonds. This week we are focused on bank accounts and brokerage accounts with options for updating them as a part of funding your trust.
For our clients with revocable living trusts, we typically recommend retitling financial accounts such as brokerage accounts and bank accounts into the name of the trust in order to take full advantage of the estate plan. Some banks will allow the Settlor(s) of a revocable trust to retitle accounts into the trust’s name because a revocable trust uses the Settlors’ social security number(s), so the bank treats the change as a name change.
In recent years, several financial institutions have started requiring the establishment of new accounts to change the name to the trust. As a result, another alternative to retitling that does not require opening new accounts is to add the trust as a beneficiary, either “Payable on Death (POD)” or “Transferable on Death (TOD)”. Also, adding the trust as a beneficiary will avoid probate of the assets.
For clients with irrevocable trusts, we recommend adding the trust as a beneficiary, either “Payable on Death (POD)” or “Transferable on Death (TOD)” to the accounts.
If you are interested in working with a Georgia attorney to create a trust, call Grissom Law, LLC today at 678.781.9230 to schedule a time to meet and discuss your needs.
Disclaimer
This Blog/Web Site is made available for educational purposes only as well as to give you general information and a general understanding of the law, not to provide legal advice. By using this blog site you understand that there is no attorney-client relationship between you and Grissom Law, LLC.