Treasury Direct Beneficiaries
Hi Terry:
I have a TD account and my wife has a TD account, both with common property funds. We have 95% in T Bills, and the rest in iBonds. I want to make sure that if one of us dies, the other has access to the funds and when we both die, it goes to our heirs. I can list beneficiaries under the Registration section, but I can’t see how to set percentages. Is it best to do it through the registration of beneficiaries that will be paid on death, or should we have the TD accounts in the name of a trust rather than in my name and my wife’s name? Thanks
Terry Says
Your last sentence nailed it! YES — this is the reason to create a Revocable Living Trust — and open a new TD account in the name of the trust, using your SS number. No tax changes, the income is reported on your joint return. And no messing around with naming beneficiaries, because your trust carries all the instructions.
You’ll have to open a bank account in the name of your RLT, and then when each t-bill matures (instead of rolling over) let the principal amount drop back into your current TD-linked bank account. Move it to the new bank account of the RLT, and then make new T-bill investments out of that account.
It’s a slight hassle now — but will save lots of hassle if either of you, or both, dies or becomes incapacitated.
