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Are there any problems / issues with making the beneficiary of a brokerage account a trust? Does it matter if the trust is defective? A trust is considered defective if it counts as a trust for estate tax but not for income tax. In this case, one of the grantors of the trust is the owner of the brokerage account. The other grantor of the trust has died.

I am in the United States.

Bob
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1 Answers1

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A trustee can open bank accounts, annuities, brokerage accounts, etc. in the trust's name.

I have read that it may be better not to include retirement accounts in a trust and to name direct beneficiaries in them. However, you should consult with a lawyer about this as well as your question about a defective trust.

Bob Baerker
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