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Can you name your trust as a secondary beneficiary on mutual fund accounts ? I've designated a person for my primary beneficiary but if that person dies I want my estate to be handled as I've requested in my RLT by my lawyer. At one time I didn't think you could name a Trust as a beneficiary but I thought that might have changed in the last few years.

Michelle
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I believe so. I have my RLT named as contingent beneficiary for my life insurance policies and 401(k), so I imagine you can do the same for a mutual fund account.

foolazis
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Can you name your trust as a secondary beneficiary on mutual fund accounts

Wouldn't you want the trust to own the mutual fund accounts?

~~ Alison
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Wouldn't you want the trust to own the mutual fund accounts?

Good point! If they are not in an IRA, you would want the trust to own them.

foolazis
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Wouldn't you want the trust to own the mutual fund accounts?

Good point! If they are not in an IRA, you would want the trust to own them.
______________________

Let's say the primary and secondary beneficiaries on the mutual funds are identical to what's in the trust. By naming the trust as a secondary beneificary the lawyer would act as a middle man and take a hefty cut, don't you think ?
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Let's say the primary and secondary beneficiaries on the mutual funds are identical to what's in the trust. By naming the trust as a secondary beneificary the lawyer would act as a middle man and take a hefty cut, don't you think ?


What lawyer? Do you mean the probate lawyer would get a cut? Wouldn't he get a cut anyhow no matter who the beneficiary is?

I'm confused.
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Let's say the primary and secondary beneficiaries on the mutual funds are identical to what's in the trust. By naming the trust as a secondary beneificary the lawyer would act as a middle man and take a hefty cut, don't you think ?

I think that would be the case only if the lawyer were the trustee or executor, as well as being the lawyer who drew up the trust.

~~ Alison
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Let's say the primary and secondary beneficiaries on the mutual funds are identical to what's in the trust. By naming the trust as a secondary beneificary the lawyer would act as a middle man and take a hefty cut, don't you think ?

I think that would be the case only if the lawyer were the trustee or executor, as well as being the lawyer who drew up the trust.
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My trust is set up to have a lawyer as the trustee. I intend to name the trust as beneficiary for my taxable accounts but I'm looking to have my IRAs stretched out by naming the beneficiaries to handle it themselves. I suspect my lawyer would liquidate the IRA's and payoff the beneficiaries or he might even stretch it our over time and make money off the trust on a yearly basis. I'm thinking the best approach is not to name the trust as beneficiary for my IRAs. Any thoughts ?
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My lawyer is not a trustee for my trust, so has no involvement whatsoever. It all depends on who your trustee is.

foolazis
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I'm thinking the best approach is not to name the trust as beneficiary for my IRAs. Any thoughts ?

I concur with this. If you want to stretch your IRA payouts, then do not name the trust as a direct beneficiary. I have named primary beneficiaries and the trust is named as a contingent beneficiary.

foolazis
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I agree with retitling the non-IRA funds i/n/o the trust, if it is a RLT and you are the initial trustee. It will bypass the probate process if you pass, and also give the successor trustee speedier access to the funds. You can use your sssn if you are the grantor/bene/trustee so you are really just retitling. You may have to provide the first/last pages of the trust to the mutual fund company.

Regarding the IRA mutual funds, naming the trust as contingent (not "second") beneficiary would be your backup estate planning. Remember, if something happens to your primary (not "first") beneficiary, to name a replacement if you can.

Sock
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