Is it okay to name a revocable trust as beneficiary of a bank account if the bank does not allow trusts to own accounts?

Many online-only banks offer higher interest rates for online savings accounts but I found that most of these banks do not allow accounts to be owned by a trust. If I list my trust as beneficiary, is it just as good as having the trust own the account?

ANSWER BY MARGARET CROSS-BELIVEAU:

Naming the trust as a beneficiary is a way to fund the trust at your death, thus avoiding probate. There is one drawback. As the trust doesn’t own the asset, the Trustees will not have any way to take over the asset if you become incompetent. You would need to execute a power of attorney to name an agent that could make financial decisions for you outside of the trust context.

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Legal Disclaimer: Please note that this answer does not constitute legal advice, and should not be relied on since each situation is fact specific, and it is impossible to evaluate a legal problem without a comprehensive consultation and review of all the facts and documents at issue. This answer does not create an attorney-client relationship. A lawyer experienced in the subject area and licensed to practice in the jurisdiction should be consulted for legal advice.

Beliveau Law Group: Massachusetts | Florida | New Hampshire

The estate administration and estate planning attorneys at the Beliveau Law Group provide legal services for estate planning, probate, estate administration, and trust administration. The law firm has offices and attorneys in Naples, Florida; Waltham, Massachusetts; and Salem, New Hampshire.

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