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#1927008 - 05/28/14 02:56 PM Personal vs Trust Account
MiMi Offline
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MiMi
Joined: Mar 2002
Posts: 365
Customer wants to transfer personal accounts into Trust. Do the certificates of deposit have to be cashed in and re-issued or can we just re-title certificates on system. Thanks for input.

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#1927035 - 05/28/14 03:25 PM Re: Personal vs Trust Account MiMi
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
Re-titling anything involving an account when it involves an entity is a very bad practice.
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#1928329 - 06/01/14 04:46 PM Re: Personal vs Trust Account MiMi
RayLynch Offline
Platinum Poster
RayLynch
Joined: Oct 2003
Posts: 544
Assuming your state law permits a trust to be a POD beneficiary, why not have your customer add a POD beneficiary designation to the CD so their trust is the POD beneficiary. Should the customer die prior to the CD maturity date, the funds will pass to their trust without the need for probate. If the customer survives to the maturity date, then if they want to continue having a CD they can have the next CD be in their trust's name.

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#1928351 - 06/02/14 01:16 PM Re: Personal vs Trust Account MiMi
Elwood P. Dowd Offline
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Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
Close account A (individual) then open account B (trust). You can transfer ownership of a check, but not a bank account.

Kentucky's multiple party account statute does not explicitly indicate that the trust would be recognized as a POD beneficiary. Listing a trust as a POD beneficiary would be an invitation to a third party to challenge the designation; i.e. you simply cannot assure the owner it would work.
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