Hello,

We are being asked to add a trust as a beneficiary on a POD Account? It doesn't make sense to me why anybody would want to add a trust as a beneficiary since the purpose of the trust is to manager a person(s) assets during his/her lifetime and distribute assets upon death.

I cannot find anything specific in WA State law that says a non-natural person cannot be named as a beneficiary. The definition of a trust/POD beneficiary is a "person" who will receive funds remaining in an account upon the death of a deposit. "Person" or "individual" is defined as individual, corporation, partnership, trust etc...To me this would imply that you can name a non-natural person as a beneficiary on a POD account just like you can with IRAs. Does anyone else have a different interpretation of this question? Under RCW 30A.22.040-Definitions:

17) "Trust or P.O.D. account beneficiary" means a person or persons, other than a codepositor, who has or have been designated by a depositor or depositors to receive the depositor's funds remaining in an account upon the death of a depositor or all depositors.

(9) "Individual" means a human being; "person" includes an individual, corporation, partnership, limited partnership, joint venture, trust, or other entity recognized by law to have separate legal powers.

We were just asked the same question and I agree with Compliance Action subscriber 1054 that the only reference to whether a non-natural person can be a POD beneficiary is in the RCW above.

I do know that FDIC insurance only allows beneficiaries to be people, charities or non-profits.