Q: On a stock portfolio, should an individual be named as beneficiary, or the family Trust? What’s better?
A: It depends on whether the stock is in a retirement account or non-retirement account. [They are taxed differently.] If the stock is a retirement (qualified) asset, the title should not be put in the name of the trust, but the trust can be a back up beneficiary in most circumstances. If the stock is not taxed as a retirement asset (meaning it is non-qualified), then the stock should be retitled into the name of the trust. Your brokers should know this information, so work with them. If you need additional assistance, contact an attorney, who can get more information from you and be able to give you specific legal advice. Best wishes!
A: When deciding whether to name an individual or a family trust as the beneficiary of a stock portfolio, there are a few considerations to keep in mind. Naming an individual as the beneficiary provides direct ownership and control, allowing them to manage the assets as they see fit. On the other hand, designating a family trust as the beneficiary offers advantages such as asset protection, estate planning, and control over distribution. It's essential to consult with a financial advisor or estate planning attorney to evaluate your specific circumstances and determine the best option based on your goals and preferences.
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