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Revocable Trust & Beneficary Designation

Posted: Mon Sep 14, 2020 7:40 pm
by swied
My parents have a revocable trust and all accounts, properties have been re title appropriately. Dad passed away early last year and I have been going through a yearly checkup of mom's accounts. I looked at a Fidelity account today and thought to look at beneficiaries. There are none listed. Should there be or do the trustees step in after Mom passes to do what is required?

Re: Revocable Trust & Beneficary Designation

Posted: Mon Sep 14, 2020 7:46 pm
by sailaway
Is this a brokerage account? Is it titled to the trust? What about the will?

Re: Revocable Trust & Beneficary Designation

Posted: Mon Sep 14, 2020 7:49 pm
by neilpilot
If an account is in the name of the trust, than the beneficiaries are already in place in the trust so long as the trust isn't dissolved. No need to also have a beneficiary appear on the account.

Re: Revocable Trust & Beneficary Designation

Posted: Tue Sep 15, 2020 6:38 am
by swied
The trust document states eveything clearly and the account is titles in the name of the trust. We should be good to go moving forward. You never know these days :happy

Thanks for the clarity

Re: Revocable Trust & Beneficary Designation

Posted: Tue Sep 15, 2020 1:48 pm
by neilpilot
BTW tax deferred accounts such as traditional & Roth IRAs should NOT be titled to the revocable trust, and should have a designated beneficiary.

Re: Revocable Trust & Beneficary Designation

Posted: Wed Sep 16, 2020 2:04 pm
by Leesbro63
neilpilot wrote: Tue Sep 15, 2020 1:48 pm BTW tax deferred accounts such as traditional & Roth IRAs should NOT be titled to the revocable trust, and should have a designated beneficiary.
Is it even possible/legal to title a tax deferred account in the name of a trust? I think not, although the trust could be named as the beneficiary (although that probably is not advisable in most cases, I suspect).

Re: Revocable Trust & Beneficary Designation

Posted: Wed Sep 16, 2020 2:24 pm
by 3CheersforLkyJack
Just went through this. Our attorney told us that we could transfer our taxable investment accounts to the trust or we could keep them in our own name as long as we had a TOD/POD/beneficiary that listed the Revocable Living Trust.

Re: Revocable Trust & Beneficary Designation

Posted: Wed Sep 16, 2020 2:38 pm
by FIREchief
Leesbro63 wrote: Wed Sep 16, 2020 2:04 pm
neilpilot wrote: Tue Sep 15, 2020 1:48 pm BTW tax deferred accounts such as traditional & Roth IRAs should NOT be titled to the revocable trust, and should have a designated beneficiary.
Is it even possible/legal to title a tax deferred account in the name of a trust? I think not, although the trust could be named as the beneficiary (although that probably is not advisable in most cases, I suspect).
Of course not. That said, there is likely nothing wrong with designating a revocable trust as beneficiary of a Roth account, particularly if the revocable trust DOES NOT include conduit trust language for inherited qualified accounts. There may be some marginal advantages of naming a revocable trust as beneficiary of a tIRA account, provided that the trust DOES include conduit trust language for inherited qualified accounts.