QUESTION
Who owns the money if the trust says the checking and saving account go into trust but there is a person on the beneficiary of account?
Asked on Mar 23rd, 2014 on Estate Planning - Nevada
15 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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The trust is just a conduit to give the money to the beneficiary. Eventually, any money that goes to the trust will go to the beneficiary.
Answered on Mar 31st, 2014 at 7:09 PM
Business Law Attorney serving Bingham Farms, MI
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James T. Weiner, P.C.
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That is a confusing situation because it gives the bank confusing signals..contact an attorney.
Answered on Mar 28th, 2014 at 5:46 AM
Civil Litigation Attorney serving Ventura, CA
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The Law Office of Robert I. Long
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As a general rule, the account holder and bank had a contract that provided in the case of the owner's death the money went to a designated beneficiary. That will take precedence over the trust.
Answered on Mar 28th, 2014 at 5:46 AM
Commercial Contracts Attorney serving Boise, ID
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Peters Law, PLLC
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If it was a pay on death account, probably the person on it. If the person was on it only for convenience, then it probably belongs to the trust. But wait, was the account in two names or the trust's name? If two names, what I said. If in the trust's name, it should not been transferred.
Answered on Mar 27th, 2014 at 10:34 AM
Commercial Attorney serving Chicago, IL
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Ashcraft & Ashcraft, Ltd.
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The financial institution is responsible for the account. The financial institution can be liable if they act at the direction of a person or entity that does not have the authority to act with respect to an account. If the account was owned by the decedent, after the decedent's death the proper person to direct the bank would be the representative of the estate of the decedent. If the decedent was the owner at the time of death, then the bank would look to see if the account had a designated beneficiary, in which case the account would pass to the beneficiary outside of the decedents' estate (thus not subject to the estate representative). If the decedent transferred the account into the trust before death then the proper person to direct the bank is the trustee. If the account was previously transferred to the trust there is no change when the decedent dies, it remains in the trust since the trust survives the decedent.
Answered on Mar 27th, 2014 at 10:33 AM
Edwin K. Niles
That would be the beneficiary.
Answered on Mar 27th, 2014 at 10:33 AM
Trusts Attorney serving Sacramento, CA
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Law Office of Victor Waid
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A perfect example of no follow through of placement of trust as beneficiary of the account. Trust will have to consider suing the individuals who took the money, but may not have a claim as beneficiary is first in time and may be first in right.
Answered on Mar 27th, 2014 at 10:33 AM
Thomas Edward Gates
If there is a beneficiary identified, the account goes to that person and by passes probate. The Trust does not control, the pour over will does. Once the Trust has received the property, then it controls.
Answered on Mar 27th, 2014 at 10:32 AM
Accounts must be named to the trust to avoid conflicts that can lead to this type of situation where now the ownership is disputed.
Answered on Mar 27th, 2014 at 10:30 AM
Normally, a beneficiary designation will be honored over the trust or will of the person. That is why it is so important that these documents be reviewed together and any inconsistencies eliminated.
Answered on Mar 27th, 2014 at 10:30 AM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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Need more details but on first impression the party to which the account was payable to on death.
Answered on Mar 27th, 2014 at 7:07 AM
Probate Attorney serving Newport, OR
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Minor, Bandonis & Haggerty P.C.
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What the trust says, under Oregon law, controls. However, in general the banks don't care about Oregon law. If the accounts were not transferred into the trust ON THE BOOKS OF THE BANK (new signature cards showing trustee of trust as the owner) then they're not in the trust. If there's a beneficiary named on the account, that person will take. IF YOU USE A REVOCABLE TRUST FOR YOUR ESTATE PLAN YOU SHOULD SEE A GOOD ESTATE PLANNING LAWYER NOW TO REVIEW HOW YOUR ASSETS WILL PASS WHEN YOU PASS AWAY.
Answered on Mar 27th, 2014 at 7:02 AM
2 Awards
Beneficiary designations take priority over a trust. If the trustee took the money, get an attorney. If the beneficiary did, it was theirs to take.
Answered on Mar 26th, 2014 at 4:25 PM
Business Planning Attorney serving Livonia, MI
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Frederick & Frederick Attorneys at Law
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The beneficiary of the account owns the money. The trust has no control over assets that are not titled in the trust. Either the person in question made a mistake or they wanted the funds to go to the beneficiary. Either way, the trust and its beneficiaries are largely out of luck.
Answered on Mar 26th, 2014 at 4:13 PM
3 Awards
The beneficiary on the account is entitled to it.
Answered on Mar 26th, 2014 at 4:12 PM