Legal Question in Wills and Trusts in North Carolina
My husband and I have a mutual fund account held jointly with rights of survivorship. If we both died simultaneously, we wanted to have our minor child listed as the TOD. My investment company told me that you can not list a TOD on a joint account - I was told the account would be distributed based on our will.
The attorney that drew up our will told us that mutual funds do not pass through the will but are based on contract and that we could add our child as a TOD on the mutual fund. We live in NC. How do we resolve this?
Thank you.
1 Answer from Attorneys
I don't see why you can't list a payable on death beneficiary on the mutual fund account as a contingency but you will have to fight that battle with your insurance company or switch companies. On the other hand, it may not be such a great idea to name a minor anyway for various reasons - it would seem to make more sense to have a trust in place for the minor ad make sure the assets go in the trust. You may also have misunderstood your attorney b/c if nothing is named on the mutual fund and you both die, the assets will go into your estate and be distributed through the residuary clause in your will.
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