On 24 Jan 2005 09:07:43 -0800, rvsw@hotmail.com wrote:
Hi
I am trying to determine the usefulness of living trust for my needs.
My main objective is to avoid probate.
For banks / investment accounts - I have already named my parents as
beneficiaries. Will the accounts still go through probate?
One bank(internet bank) however does not allow the facility of
beneficiary. How do I avoid probate in that case?
If you have a named beneficiary (such as with a pay-on-death account),
the beneficiary gets the account without probate. Usually all they
have to do is produce a death certificate. This is a handy way to get
some liquid assets into the hands of your survivors quickly.
A bank that will not provide such a service is not providing very good
service; pay-on-death (or Totten trust) account registration is common
enough that it is something you should expect a good bank to do. But
you did say "Internet bank."
An alternative that is not as good is a joint tenancy with right of
survivorship (also JTWROS; almost all joint tenancy accounts are this
way). One reason it is not as good is that the account is unprotected
from creditors of the joint tenants.
You could also form a living trust and put the account in the name of
the trust. In places like California, where living trusts are common,
this should not raise eyebrows. Whether your "Internet bank" will
accept a living trust registration is something you will have to ask
them.
--
Not a lawyer,
Chris Green
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