Revocable Trusts and Online Banks

[Drake3287]

We recently we had a revocable trust done and part of this of course was to put all of our various financial accounts into the name of our new family trust. The attorneys office did most of the paperwork in notifying all of our financial institutions including a couple of online banks we have. During this process we had to have various paperwork signed and notarized which was sent off to these financial institutions.

Going forward, if I was to open an account with a new online bank, how much of a hassle is it to open an account under the trusts name when my wife and I aren't there to sign anything in person? Like most people I'm use to opening joint accounts with little or no hassle, just wondering how much of a pain it'll be to deal with opening new online accounts down the road. Thanks for any comments or experience.

 

[beyou]

There is a bit more to do. They need to see a copy of at least parts of the trust document at most banks or brokers. That said many people recommend that your joint checking used to pay bills can remain as a regular joint account outside the trust. Bulk of your saving should be at a brokerage firm in a trust account.

Why do you feel you will be opening banks often ? I keep a primary and backup checking account for bills, and all my savings are in primary and secondary brokerage accounts. My main broker has our assets in revocable trust accounts, and so long as the trustee is same person as one of the bank joint account holders, I have had no issues moving cash between the banks for bills and the trust for savings.

 

[Midpack]

That said many people recommend that your joint checking used to pay bills can remain as a regular joint account outside the trust. Bulk of your saving should be at a brokerage firm in a trust account.

+1. If you leave checking outside the Trust, make it POD - presumably making Successor Trustee(s) beneficiary.

 

[Slim11]

Thats what I did for my checking account, pod to the trust, then they asked for the trust agreement and scanned in in. This was at a physical bank but I assume the process is about the same.

 

[ncbill]

Have the attorney provide you with an abstract of the trust.

Which identifies the trustee(s) but does not divulge the beneficiaries.

Some will be satisfied with the first and last pages just as long as they can identify the trustee(s) from that.

 

[rk911]

We recently we had a revocable trust done and part of this of course was to put all of our various financial accounts into the name of our new family trust. The attorneys office did most of the paperwork in notifying all of our financial institutions including a couple of online banks we have. During this process we had to have various paperwork signed and notarized which was sent off to these financial institutions.

Going forward, if I was to open an account with a new online bank, how much of a hassle is it to open an account under the trusts name when my wife and I aren't there to sign anything in person? Like most people I'm use to opening joint accounts with little or no hassle, just wondering how much of a pain it'll be to deal with opening new online accounts down the road. Thanks for any comments or experience.

We also have a family trust and all bank/investment accounts are titled to the trust. All we had to do with a new account was to provide the title page showing the date and the signature page of the trust. Some institutions may want additional information but it should not be cumbersome.

 

[RetMD21]

We had no issues with our existing bank but coudn't get any cooperation out of our credit union. We thought another credit union might be easier but it wasn't. We ended up keeping just a small credit union checking account with beneficiaries.

 

[rk911]

We had no issues with our existing bank but coudn't get any cooperation out of our credit union. We thought another credit union might be easier but it wasn't. We ended up keeping just a small credit union checking account with beneficiaries.

What were the CUs objections?

 

[Drake3287]

Thanks for the comments. I had planned to start combining some of my accounts like our attorney recommended but I see one of the online banks is now offering a $1,500. savings account bonus for a 90 day commitment of $100k. I admit I like to chase these bonus accounts, free money the way I look at it. Being retired now I have plenty of time to play the game.

 

[frank]

I don[t see the problem with putting your real and personal property in a revocable trust, but leaving checking accounts, cd/s, and savings account under joint ownership with a pod to whomever you choose.

 

[RetMD21]

What were the CUs objections?

They said they just didn't do it as a matter of policy, The rep checked with the branch manger.

Sometimes I think it is a matter of understanding. I was on the phone with Fidelity today with 2 reps. They gave me misinformation about trusts and CMA accounts.

 

[JBTX]

Has anybody had any experience with transferring money from an investment account in a RLT to a joint bank account not in an RLT? Any issues setting that up or making transfers?

Does your RLT at a brokerage account stay within your existing login?

 

[RetMD21]

The transfers were never a probem for us. Vanguard shows the accounts in one login. I'm not sure about Fidelity since I am still in progress

 

[MichaelB]

Has anybody had any experience with transferring money from an investment account in a RLT to a joint bank account not in an RLT? Any issues setting that up or making transfers?

Does your RLT at a brokerage account stay within your existing login?

No issues for us. You just need to set up the transfers like any other. When the account names are different it usually takes a couple of days to establish the link, and from then on it is like any other.

 

[beyou]

+1. If you leave checking outside the Trust, make it POD - presumably making Successor Trustee(s) beneficiary.

As of today I have no POD. Joint checking with my spouse. If one passes the other one retains.
When the 2nd passes, would go to our estate yes, but our estate leaves such assets to trusts. Will provides for same disposition as the revocable trusts.

This could be a problem for executor & trustee slowing them down paying final bills.
Also prevents assistance should be be incapacitated.
So I am considering adding POD now to my adult child, and later adding him as POA if and when we need help paying bills while alive.

 

[Anthonyin2022]

We researched doing a trust, but came to the conclusion that, for us, we trust our two kids and just want to keep things as simple as possible. So we have PODs and TODs on every significant asset, including our house deed, so when we croak, they will have a much easier time transferring ownership. We have our oldest on our checking account, as she is executor, so that she can have immediate funds to handle bills after the last parent passes. We felt the main value of a trust for us was setting up specific rules about who gets what and when (controlling from the grave) and that didn't interest us. Then we have a pour over will to cover anything else, along with health care and property POAs in case we become incapacitated.

 

[ncbill]

I've used RLTs with a couple of relatives...only setup after their respective, terminal diagnoses.

Bluntly, because I was also their primary caregiver having to handle ALL their affairs.

With myself named as co-trustee, not successor.

I had no problems moving their financial assets into the trust via their DPOA (lawyer handled real estate)

They would have been able to help if that had been a problem.

But only for a short while, so I hustled through that process.