Revocable trust

[Bjorn]

Facts: A local bank has a trust dept and they have set up an account with the title revocable trust. They charge over 2% of the account value as fees.

Since this is revocable can she move the full account to a "normal" brokerage account and just file it under her social security number from here on out.

I think the bank does this to make it hard to move assets.

Mahalo

Bjorn

[OldJack]

A revocable trust account is already under her social security number. Earnings of a revocable trust are taxable each year on the grantor's 1040 just the same as any other investment account with her social security number. The trust does not file a tax return unless and until the grantor dies.

The purpose of the revocable trust is to avoid probate court and acts simply like a will to distribute the balance of the account.

[Bjorn]

Revocable Trust

Do you think the revocable trust is worthy it?
It sounds like it is very easy just to title the account with the words revocable trust in it.

[S T]

Seems Like

It would seem that the Bank could not have set up a Revocable Trust without a legal revocable trust document. Most institutions will not title an account with some proof of a Revocable Trust, face page, declarations and a notarized signature page.

If the client is unhappy about the Bank charging 2%, the client can move the "investment" to a brokerage house, another bank, etc. titled into the Revocable Trust.

If the account is not titled into the Revocable Trust, then when the client is deceased, the heirs will have to go through the Probate system in the State of residence or other States that the asset is held in.

As previously stated the revocable trust with or without has no bearing on the Income Tax reporting from year to year. All income is reported on the t/p returns. However, the revocable Trust does serve a purpose for passing the estate without the intervention of the State's probate court, which would include attorney fees, court fees, etc.

Sandy