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  1. #1
    Join Date
    Sep 2017
    Posts
    2

    Default How to Designate a Testamentary Trust as a Beneficiary of Financial Accounts

    My question involves estate proceedings in the state of: VA

    I created a simple will designating that a Testamentary Trust be created for each of my children. I am now going through my financial institutions and updating the secondary beneficiaries to list the Trusts. The institution forms all seem geared towards Living Trusts and are asking for Tax ID and Date of Trust creation. These Trusts will not be created until my death so the information they are asking for does not exist at this time. When I called each institution (Bank, Roth, 401K, stock, etc.) they don't seem to understand my question.

    What do I use for these fields (Tax ID and Date)?

    Also,
    How do I correctly list the beneficiary? Is this acceptable: "The <name of child> Trust created in my last Will and Testament"
    The Will refers to the trust simply as:
    ARTICLE FIVE
    <name of child 1> Trust

    ARTICLE SIX
    <name of child 2> Trust
    Thank you.

  2. #2
    Join Date
    Oct 2014
    Posts
    8,238

    Default Re: What Do I Use for the Trust Tax Id and Date on a Beneficiary Form (Testamentary W

    You have a problem here. The testamentary trusts will not be created until sometime after you die and the will is submitted for probate. You cannot list as pay on death (POD) beneficiaries of your financial accounts a trust that does not yet exist. That is why the forms do not have spaces to accommodate that. If you want the trust to get those assets then those assets will need to go to the estate and from there the estate will transfer them to the trust as directed by your will. If you don’t name any POD beneficiaries on the accounts then by default they go to your estate.

    There are two alternatives to this. First alternative is to create a living trust now and designate that trust as the POD beneficiary. The will could then contain a pour over provision that sends estate assets to that trust rather than creating the testamentary trust. The second alternative would be to simply name as beneficiaries of the financial accounts those persons whom you ultimately want to get those assets rather than trying to get them into a trust

  3. #3
    Join Date
    Sep 2017
    Posts
    2

    Default Re: What Do I Use for the Trust Tax Id and Date on a Beneficiary Form (Testamentary W

    Thanks for your response. I do believe there is a way to list the trust. Testamentary trust seems to be a commong and viable tool to accomplish my goals

    In the interest of brevity, I left out a few details.
    One institution has the following beneficiary option:
    "To the trustee of a trust created under my last will"; Section of Will _______, Name of Trust _________.
    Another actually list "Testamentary Trust" as a beneficiary option.
    These do not ask for TaxID or Date.
    For the others, I think I just need to by-pass their Web site and write directly to institution.

    My main concern was using the correct name for the Trust.
    I am still unclear about that.

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