Trusts
Person who created the trust
Grantor/ Settlor
After an account owner passes away what type of account are the funds transferred into?
Beneficiary IRA
The account owner passed away and spouse and two sons are benes, what is the spouse's options? The sons?
Can treat as own, or open Bene IRA for spouse.
For sons, they need to open Bene IRAs
What is a primary Bene?
First in line to receive funds if a client passes away
How many benes can be listed on an account?
as many as they'd like
what is needed to open a trust account?
Trust account Application or Trust account Conversion form, copy of trust documentation (optional but we are ablt to request at any time)
What tax documents are generated for retirement accounts?
1009R and 5498's
Tax reporting is under what?
SSN
What is a Contingent Beneficiary?
IF the primary bene passed before the account owner, the Contingent bene will be next in line
There are three benes: George, Bonnie and Sam.
George an Bonnie have turned in all of their documents, but Same has not. Can we transfer to George an Bonnie?
No, we need all paperwork to be turned in before we can split unless they want to send in an LOI for Early distribution
What is the U/A date of a trust?
Date the Trust was formed/amended
What is an RMD and how is it determined?
The amount that is due once the client reaches the Required Beginning Date, it is determined by the account balance on Dec 31st of the year before the RMD is due
What is the amount of time to contest beneficiaries?
9 months
What is per stirpes
This is if any primary or contingent Beneficiary, does not survive the Account Owner, but leaves surviving descendants, any share otherwise payable to such Beneficiary shall instead be paid to such Beneficiary’s surviving children
When a client requests an early distribution, what are they missing out on?
Dividends, interest, and any odd share left to them
Why might a person open a trust?
Manage assets, to avoid probate, avoid creditors, minimize tax consequences
How can RMD's be taken?
online, IRA Distribution form, or by pure verbal as long as it is not a ROTH (BENE) IRA
A beneficiary must take a decedent’s RMD by Dec 31 of the year of death or risk a _____ penalty
50%
How are beneficiaries designated on Basic account types? What about for IRAs?
Basic- TOD agreement or online
IRA's- IRA Change of Beneficiary form, online, or on application to open IRA or Bene IRA
If a client requests to bypass the estate account, are they able to?
Yes, they can do so by sending in a signed LOI stating that "
- If you are the Executor, please submit the following:
- A copy of the certified Court Appointment
- A signed Letter of Instruction stating that you are the Executor, and clear distribution instructions, including the names and TD Ameritrade account numbers of all recipients, and the percentages they should receive (if applicable). Please provide your name, signature, and date.
- In addition, we’ll need a copy of the certified death certificate.
- If you are the Small Estate Heir or surviving spouse, please submit the following:
- A copy of a certified/notarized Small Estate Affidavit that lists the TD Ameritrade account(s). Please contact your legal advisor or the county courthouse where the deceased resided if you need more information on obtaining a Small Estate Affidavit.
- A signed Letter of Instruction stating that you are the Small Estate Heir or surviving spouse, that the estate was not probated,, and clear distribution instructions, including the names and TD Ameritrade account numbers of all recipients, and the percentages they should receive (if applicable). Please provide your name, signature, and date.
- In addition, we’ll need a copy of the certified death certificate.
"
What documentation is needed when the Trustee passes away on a trust?
Death Certificate, Trust account Conversion Form, copy of trust documents/ trust certification
Where should all any tax questions be directed?
To a tax advisor
How is the Line of Succession (LOS) determined if there are no benes?
We will receive a letter stating the LOS, see http://thesource.associatesys.local/Retail/Accounts/modaccounts/Estate/Pages/Opening-Estates-Account-pro.aspx for exact verbiage.
How do we update the Benes on a Trust?
Trust accounts do not have benes as the benes are listed in the trust documents
What team is the best? Dawson, Cole, or Clabert?
ALLL of the them! ONE ESTATE!