How to name beneficiaries and fund a trust at Independent Bank

A POD beneficiary is added or updated on a deposit account.¹

An IRA takes its own IRA Beneficiary Designation form with primary and contingent beneficiaries.¹

A trust can be named as a beneficiary; the trust name, date of trust and tax identification number are required.²

An IRA can name a trust as beneficiary.²

Two or more beneficiaries take in equal shares without right of survivorship unless the account record says otherwise.²

Under Section 13 of the Deposit Account Agreement a named beneficiary is assumed primary unless it is indicated as contingent.²

For payable-on-death accounts. Completed by the account owner, signed and mailed to the branch where the account is held. Sent by the institution on request.¹

Where the primary beneficiary predeceases the owner and two or more contingent beneficiaries survive, they own the account in equal shares without right of survivorship unless otherwise indicated (Section 13).²

A POD beneficiary can withdraw only after every owner or trustee on the account has died, and only from the balance remaining after outstanding checks and debits clear.²

Under Section 16 (Authorized Signer (Agent) Designation) an agent may transact on the account but "has no ownership or rights at death unless named as a Payable on Death beneficiary or named as an In Trust For beneficiary".²

An IRA cannot be retitled to a trust.²

For trust accounts. Completed by the trustee, mailed to the branch where the account will be held. Sent by the institution on request.¹

A banker opens a new trust account or converts an existing account to trust ownership. Existing personal deposit accounts can typically be converted with proper documentation.¹

Section 9 of the Deposit Account Agreement confirms the bank opens "joint, trust, fiduciary or custodial" accounts, and adds that determining the legal effects of such an account is the customer's own responsibility.²