Do you need named benis with trust account?

[RenoJay]

If a savings account is titled to a trust, does the owner also need to name beneficiaries on the account or does the trust itself cover all that?

 

[VanWinkle]

If a savings account is titled to a trust, does the owner also need to name beneficiaries on the account or does the trust itself cover all that?

If it is title to the trust, I would think the trust would take precedence. The assets are do be distributed as stated in the trust.

 

[Onward]

Not an attorney, but I believe that naming the trust is enough.

 

[bingybear]

Not an attorney, but I believe that naming the trust is enough.

Provided the trust has direction as to what happens to the assets ... who or what benefits from the trust assets and how. Make sure the trust directions are properly written. Also make sure you know who successor trustees and they know what the trust requires. If using a family member is doing it, make sure they have someone to help them understand their legal obligations.

 

[Bamaman]

Are income taxes on trusts higher than personal income taxes?

Is it common for a trust to come into effect at the date of someone's death?

 

[kaneohe]

Are income taxes on trusts higher than personal income taxes?

.................................................

kind of depends how you think about it............looks like the rates might be the same ...up to 37% ?..........but you get there at 500-600K at personal rates and
at 12.5 K for trusts........so effectively they are higher.

 

[ERD50]

Are income taxes on trusts higher than personal income taxes?

Is it common for a trust to come into effect at the date of someone's death?

Yes, but if the income is distributed to individuals, and not retained in the trust, the income is taxed at the individual's rate on the individuals tax form The trust will issue a K-1 to document this.

-ERD50

 

[bingybear]

Are income taxes on trusts higher than personal income taxes?

Is it common for a trust to come into effect at the date of someone's death?

Do trusts kick in when someone passes. Yes and no. We had a trust years ago that was known as a buy pass, AB, or family trust. While we were alive the trust existed, but let us have full control until one of us passed away. Then the trust would control about half the assets. We changed the trust as the older forms had lots of things that were not relevant anymore.

So we now have a trust that allows full control until death of the second. But the trust is in effect while we are alive. It just gains powers (more control) after death or sometimes incapacity. When the grantor is no longer under control, yes, the taxes are higher. YMMV

 

[RenoJay]

Thanks everyone for the helpful feedback!