Getting Brokerage and Bank Accounts into AB Living Trusts
Husband’s and Wife’s assets are great enough to be subject to estate taxes, so they have a living trust AB Trust (also known as bypass or family trust). A large portion of their assets are in: a) brokerage accounts showing each other as beneficiaries; b) bank accounts showing each other as ‘Pay on Death’(POD); and c) brokerage accounts held by the two spouses in joint tenancy with right of survivorship (Georgia).
The living trust lists all of these accounts as being included in the trust, but all of these accounts remain in the name of either husband, wife, or both names (jt. Ten wros); rather than in the name of the Trust. I am concerned this may not be sufficient to ensure that the property gets into the ‘Trust A’ (i.e., the deceased spouse’s trust which becomes irrevocable and to which the surviving spouse becomes a life beneficiary).
1) Is it necessary to re-register these accounts in the name of the Trust or Trustee(s) , showing the owner to be something like “John and Mary Smith Living Trust” or “John Smith, Trustee as Co-Trustee of the John and Mary Smith Living Trust and Mary Smith Trustee as Co-Trustee of the John and Mary Smith Living Trust”?
2) If a POD account is registered in name of Trust or Trustee, who should be shown as the beneficiary… the Trust? If a brokerage account with a beneficiary is is registered in the name of a Trust or Trustee, who should be shown as the beneficiary … the Trust?
3) Would it be sufficient to: a) leave brokerage accounts in name of either husband or wife and show the Trust as the beneficiary?; b) leave POD accounts in name of either husband or wife and show Trust as the POD?