Hi, we have had a customer come in who has a CD in her name solely, and she wants to add a yet-to-be-formed trust (will be established upon her demise) as the beneficiary of the account. Is this acceptable??

Man, I should have went to law school....thanks.

Mark, I should have went to law school also.

If there is no agreement already drawn up to establish the trust upon her demise, then there is no such entity and my question would be how can a non-existent entity, or person for that matter, be named a beneficiary?

This is a question that you may want to run by someone who did go to law school.

I believe that will depend on your state law. My will indicates that everything I own will go into trust for my daughter should I die before she turns 21. That is sufficient for my bank accounts under GA law. However, the life insurance company had to have the beneficiary listed as "The estate of..." - they wouldn't let me list a minor child nor would they let me list a trust that may or may not be established.

We just recently had a messy one along these lines in Illinois.
Mom was sole signer on savings accounts and CD's with minor child named as sole beneficiary. Mom died earlier this month, and Dad came in to get the money for the child.
PROBLEM: Money now belongs to the minor who cannot make financial decisions. Father had to go to court to get papers naming him guardian over the estate and he cannot make any withdrawals from the minor's account without a court order. This is done to ensure that the proceeds are being used for the minor's benefit and not for the father's.
He was not too happy with us, but we weren't going to have the minor come back to us in 5 years and sue the bank because daddy blew all the money on himself.
I can understand why they wouldn't let you name the child as beneficiary, I wish Illinois had a similar law.

A trust to be established at the death of the settlor is not uncommon. It could be a testamentary trust in which case it will come into existence as the result of specific language in the settlor's will. A testamentary trust essentially the same as a "trust under will" (very subtle difference.)

If not a testamentary trust "springing" from the will, it could potentially be another type of trust that does not actually fund until the death of the settlor, perhaps with the proceeds of insurance proceeds, or potentially by assets that are POD to the trust.

For particulars regarding your specific situation, I highly recommend you visit with your legal counsel. Counsel will be able to review your particular situation and apply applicable law.