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Can a brokerage account be titled in the name of a trust?
In order to have your brokerage accounts titled in the name of your revocable living trust at your death, you must establish your trust and open a trust account at the financial institution. I took a look at the requirements that three different financial institutions have regarding establishing an account in the name of a revocable living trust.
Should I create a trust for my non-retirement brokerage account?
Many people prepare for the inevitability of their death by creating trusts to ease the transfer of, among other assets, the non-retirement brokerage account.
How do I set up a trust account?
They all have well established procedures with different degrees of difficulty. Fidelity has a Trust Application form and a Certification of Trust form. The Trust Application opens a new account in the name of the trust. To transfer over an existing account already in individual names, you just put the account number (s) in Section 4.
How do I open a new trust account at Vanguard?
Vanguard also required a new trust account application. The application was done by filling out a PDF form online through DocuSign. Because all new accounts at Vanguard must be a brokerage account now, we couldn’t stay on the simpler mutual-funds-only platform any more.
Can my broker open a trust account for me?
For the most part, every broker can open a trust account for you – but the surprising thing I discovered was how unwilling several brokers made it. You’d think that every broker (online and offline) would want the business. That just wasn’t the case.
What happens to your brokerage accounts when you die?
It’s these non-retirement accounts that, when an individual’s name at their death, get frozen and must go through probate. In order to have your brokerage accounts titled in the name of your revocable living trust at your death, you must establish your trust and open a trust account at the financial institution.