Legal Question in Wills and Trusts in Florida
my dad is rolling over a jumbo cd and was advised by the bank to put it in his name ,in trust for me as the sole beneficiary vs putting it in the formal trust.Can you tell me what he should do and why? Thanks, Lynne
2 Answers from Attorneys
If he does an In Trust For (ITF) account, it will avoid probate. An ITF account is a valuable estate planning tool when done in the right circumstances. It's easy and free to create.
The benefit of a Trust would be in case of incapacity it would protect him. Plus, there is more flexibility as to distribution. However, it is more expensive to set up, and his creditors could attach the assets after his death.
To properly know, he should consult with an estate planning attorney.
The bank may not even know of his trust agreement. The ITF account avoids the probate issue.
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