ADDITIONAL INFORMATION:

If a bank has an INVESTMENT ACCOUNT titled “Transfer on death” to one beneficiary and a Living Trust document (unfunded) lists the INVESTMENT ACCOUNT as trust property to another beneficiary, which document prevails?
The Grantor is deceased.

ATTORNEY ANSWER BY MARGARET L. CROSS-BELIVEAU:

A trust must be funded in order for it to do any good. A trust may be funded either during a person’s life, which is the least costly way, or via probate if directed by the Last Will and Testament to fund the trust. In your case, the asset was not transferred during the grantor’s life. His Will will not govern because any account with a transfer on death avoids probate. The investment account will go to the beneficiary listed on the account.

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. Circular 230 Disclaimer: Any information in this answer may not be used to eliminate or reduce penalties by the IRS or any other governmental agency.

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