What Is the Effect of Having Savings or Securities “In Trust for) Another Person? How Do Such Bank Accounts Differ from a Custodial Bank Account for a Minor?
Monies on deposit in a bank account standing in the name of a depositor “in trust for” another become the monies of the named beneficiary immediately upon the death of the depositor. In 1997, the State Legislature changed the law to permit securities to be similarly owned by one individual “in trust for” another. Like the bank accounts, those securities remain the exclusive property of the owner until death, when they are transferred immediately to the survivor. For person dying before January 1, 2005, a succession tax return will need to be filed for such assets. An alternative way of providing money in an account for the benefit of a minor child is by opening a custodial account under the Uniform Transfers to Minors Act. The depositor could act as a custodian of such monies. However, the monies in a custodial account belong to the minor at all times and can only be used for the minor’s benefit. When the minor attains the age of twenty-one, he or she is entitled to receive those mon
Related Questions
- What Is the Effect of Having Savings or Securities "In Trust For" Another Person? How Do Such Bank Accounts Differ from a Custodial Bank Account for a Minor?
- What Is the Effect of Having Savings or Securities "In Trust for) Another Person? How Do Such Bank Accounts Differ from a Custodial Bank Account for a Minor?
- What is the effect of having savings or securites in trust for another person? How do such bank accounts differ from a custodial bank account for a minor?
