CD WITH TRUST AS BENIFICIARY
IS IT ADVISABLE TO NAME YOUR REVOCABLE LIVING TRUST AS BENIFICIARY OF YOUR CDS
IF YOU DO , MAY YOU STILL CASH THESE CDS WHEN THEY BECOME MATURE/CAN YOU ROLL THEM OVER WITHIN THE TRUST ? ALSO DO THEY PASS TO YOUR HEIRS AND HOW ARE THEY THEN TAXED
Terry Says
NO — you don’t want to name a beneficiary for these CDs. You want to open your bank account in the NAME OF THE REVOCABLE LIVING TRUST! That immediately solves the problem of distribution on death. And there will be no federal estate taxes — unless your estate is well over $12 million!
