Is it permissible to just change the account names on 2 existing individual accounts (each under its owner's SSN) to the name of a single living trust? Won't this result in a TIN mismatch - i.e. we would be reporting interest for a single trust name under 2 SSNs to the IRS? In the past when husband and wife do not have separate living trusts, we have always retitled the account associated with the SSN of one grantor and had the spouse transfer their account to the renamed living trust account. A couple do not want to have to make any changes other than the name on their accounts and their attorney has stated they don't have to right in the trust. I think that if the grantors want to still use their separate SSNs that they should each have a living trust. Help!?

Can you give examples of how they want the accounts to read? For example, do they want any of these?

"The Smith Family Living Trust"
"The Mary Smith Living Trust"
"The Tom Smith Living Trust"

Because obviously the TIN will have to line up with how they want them titled.

Whose ss# would be used? We don't allow someone to just change the name on the account to the trust's name. In this instance they would be using two ss#'s for the trust. We would ask that the accounts be closed and reopened into one name and one ss#. And in my experience, just because the attorney says they can and put it in writing in the trust - under banking rules it doesn't work. Attorneys know law but they don't always know banking. We have attorneys that tell us we don't need the ss# to open an account either but we don't listen.

We allow the name change on the original account and then the new TIN if appropriate.
For example, let's say Tom and Mary Smith create the "Smith Living Family Trust" we would change their existing joint account to read this new name and then change the TIN to the TIN number of the trust.

We never change the TIN on an account because of 1099 issues. Changing the TIN in the middle of the year would now put all of the interest under the TIN of the new name or entity for the entire year. We prefer to have a clean paper trail for future research.

LS - You're analysis is right on. We also now require that an account be closed out and a new one opened to create a clean audit trail and keep the 1099 reporting accurate. I was especially concerned about 2 SSNs for one living trust. We have our fair share of attorneys trying to intimidate our CSRs (or sending their clients in with erroneous information) and insisting that we are using archaic methods. Talk about arrogance.