QUESTION
What if I have a living trust and a bank account with different beneficiaries?
Asked on Apr 24th, 2013 on Estate Planning - Michigan
More details to this question:
What if I have a living trust with heirs being let’s say x and y and I have all my bank accounts listed on there but with one bank I have a beneficiary listed with person z. If I die will the account be giving to x and y or z?
22 ANSWERS
Real Property Attorney serving Utica, MI
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Douglas A. Tull, P.C. Attorney at Law
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A trust only operates as to the assets which are "titled" in the trust - so a bank account not in the trust name and with a beneficial designation to an individual won't end up in the trust - it goes to the beneficiary named on the beneficial designation.
Answered on May 07th, 2013 at 12:42 AM
This could lead to a fight in probate court. Generally speaking, the notations on the bank accounts would be followed by a court, but it depends on the language of the trust.
Answered on Apr 26th, 2013 at 2:29 PM
Edwin K. Niles
A named beneficiary on an account will prevail. Z gets the money.
Answered on Apr 25th, 2013 at 9:34 PM
2 Awards
The trust will control the assets titled in the trust and the beneficiary designations will control the assets with beneficiary designations.
Answered on Apr 25th, 2013 at 9:30 PM
The bank account with named beneficiaries goes to those beneficiaries and not to the trust or the trust beneficiaries.
Answered on Apr 25th, 2013 at 1:05 PM
The account would go to Z. If that is not your wish you should change the beneficiary designation. In general you should be sure that your trust and any direct beneficiary designations are the same to avoid problems for your Trustee in the future.
Answered on Apr 25th, 2013 at 1:05 PM
Possibly. I would recommend that you either amend your trust or change the beneficiary to comport with your wishes.
Answered on Apr 25th, 2013 at 1:04 PM
Estate Planning Attorney serving Wilmington, DE
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Reger Rizzo & Darnall, LLP
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The one with the beneficiary will pass outside the trust.
Answered on Apr 25th, 2013 at 1:03 PM
Estate Planning Attorney serving Suwanee, GA
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Law Office of Glenn M. Wall
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Z would receive the bank account. The beneficiary designation controls where the account goes at death.
Answered on Apr 25th, 2013 at 1:03 PM
Trusts and Accounts are non probate mechanisms to pass property to designated beneficiaries. If an account is kept outside of a trust and has its own beneficiary designations, then the beneficiaries designated in the account paperwork will be entitled to the account. The assets that are in the trust will pass to the beneficiaries of the trust in accordance with the instructions of the trust. The trust will not have any affect on the bank account if it is kept separate from the trust.
Answered on Apr 25th, 2013 at 1:02 PM
It will go to z.
Answered on Apr 25th, 2013 at 1:01 PM
Taxation Law Attorney serving Glendale, CA
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Irsfeld, Irsfeld & Younger LLP
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z
Answered on Apr 25th, 2013 at 1:01 PM
Probate Attorney serving Newport, OR
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Minor, Bandonis & Haggerty P.C.
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Z. The bank account, if it has beneficiaries named, must not be in the trust, so the trust will not affect it. The bank has a contract with you that says they are to pay the account over to Z on your death. If you have a revocable living trust as your primary estate planning vehicle, all of your assets should be transferred to the trust. So often this is not properly done, and then we have to do a trust administration AND a probate, and sometimes the wrong people inherit.
Answered on Apr 25th, 2013 at 1:00 PM
Trusts Attorney serving Sacramento, CA
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Law Office of Victor Waid
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To Z as the account is outside of the trust and has a named beneficiary.
Answered on Apr 25th, 2013 at 12:59 PM
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Any account with a named beneficiary will be an account which is not in the trust. A bank, if it is doing its job properly, will not allow a depositor to establish an account in the name of the trust and at the same time designate a beneficiary of the account. Therefore, based upon the facts presented, the account must be in the name of the deceased individual, not in the trust. Therefore, the beneficiary designation will control, so Z will inherit the account to the exclusion of the trust beneficiaries.
Answered on Apr 25th, 2013 at 12:58 PM
Business Planning Attorney serving Livonia, MI
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Frederick & Frederick Attorneys at Law
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The account would go to Z. The trust controls only those assets titled in the trust.
Answered on Apr 25th, 2013 at 12:56 PM
Probate & Trust Attorney serving Seminole, FL
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Law Offices of Phillip Day, P.L.
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The accounts will go to the beneficiaries of that account, so z will get the monies. A bank account is a contract just like a trust. The trust has beneficiaries and the bank account has beneficiaries. Two separate contracts. This presumes that the bank account is in the individual's name and not the trust name.
Answered on Apr 25th, 2013 at 12:55 PM
The beneficiary destination is separate from the trust, so the bank will do what you have put on the account. If the back account is in the trust, then the bank and trustee will give it to the beneficiaries of the trust.
Answered on Apr 25th, 2013 at 12:54 PM
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A bank account with a POD beneficiary will be distributed to the beneficiary, so Z. The asset is not part of the Trust. This information is only intended to give general information in response to an inquiry. It does not establish an attorney client relationship. This response is only based upon the limited facts presented and is merely intended to assist you in determining if you should contact an attorney to provide you with legal advice.
Answered on Apr 25th, 2013 at 12:53 PM
Litigation Attorney serving St. Louis, MO
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Probate Law Center Richard J. Keyes, PC
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The beneficiary designation on the bank account has priority over the trust designation of beneficiaries. The one account with the beneficiary of z would go to z.
Answered on Apr 25th, 2013 at 12:52 PM
Generally speaking, if you're bank account is held jointly with Z, then Z can take over full ownership of the account simply by presenting your original death certificate to the bank.
Answered on Apr 25th, 2013 at 1:09 AM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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The account with a payable on death instruction will go to z.
Answered on Apr 25th, 2013 at 12:40 AM