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Trusts & Estates Law/transfering multiple brokerage accounts to a family trust

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QUESTION: My wife and I want to set up a family revocable trust; we think an AB trust fits our wishes. She has a separate brokerage account in her name and wishes to designate me as life beneficiary of that account and our children as final beneficiaries. Similarly, I have a separate brokerage account and wish to designate her and life beneficiary and our children as final beneficiaries. How should these brokerage accounts be titled so that they come under the family trust? We prefer to not co-mingle the separate accounts. Thank you.

ANSWER: You have to move all the accounts into the trust and draw the language to follow the path you just outlined.  Otherwise you can not use any such device a "life beneficiary".


If you need more information, please reply.

Cheers

David

---------- FOLLOW-UP ----------

QUESTION: Thank you. I do not yet understand how to title/re-title 2 accounts under one trust. Let me ask by example: Assume A trust title of "The John and Jane Doe Trust". John wants to title his brokerage account so that it resides within the trust and similarly so does Jane - but keeping separate  accounts.

Please suggest a wording for the title of John's account and of Jane's.

I believe that I understand the mechanics for all the rest once the accounts are transferred.

Answer
Sounds like you are trying to do this without an attorney which I don't advise.  However, all you have to do is re-title the accounts in the name of the trust.  They will still be separated but under one umbrella.  Understand though that they will pass according to the trust language.  Your broker can show you how to do this.

One questin though:  Where did you get this trust document, i.e., off the internet or where?  If you need my help we can do it over the phone.  Let me know.  Your questions concern me as this is basic stuff and it must me done right.  Same thing with all your other property, including your house.  Lastly why do you even need a trust?  You can do what you have described without one.  Did someone sell you something?

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David Disraeli

Expertise

I can answer general questions about estate planning and trusts. I can also answer questions about estate tax reduction and advanced charitable giving, family partnerships and asset protection. I may have already answered your question here: www.lifeplanblog.com or here www.pcfo.net

Experience

I have worked for 24 years with clients and their attorneys to formulate estate plans to meet client goals. I have found many mistakes made by client attorneys and were able to have them corrected. I focus on making sure that beneficiaries are protected from current or future spouses and lawsuits so the wealth stays in the family. I have also published a book on Aging Parents which can be found on Amazon https://www.amazon.com/dp/B003VP9WTG

Organizations
President and founder of The Personal CFO Inc.

Publications
www.pcfo.net www.lifeplanblog.com

Education/Credentials
Certified Financial Planner 1994

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