Trust Proceeds Transfer Guidance

Summary

If a trust owns a property, sale proceeds usually need to be deposited into a bank account under the trusts name. Simply adding the trust as a beneficiary to a joint account may not be sufficient for managing assets owned by the trust. It is advisable to consult with an estate planning attorney to ensure proper handling of trust-related transactions and compliance with legal requirements.

Full Conversation

We sold our condo in Galveston Texas. We have a revocable living trust that is owned by myself and wife. We are being told that the title company can’t wire transfer our proceeds of the sale to our joint bank account that the owner of the bank account must be in the trust name. When we created the trust we were told we didn’t have to do anything with our joint bank accounts other than to add the trust as a beneficiary. Who is correct
Hi ****! In situations involving trusts and bank accounts, here are some general points to consider:
- If the trust is the legal owner of the property, the proceeds typically need to go into a bank account under the trust's name.
- Adding the trust as a beneficiary may not suffice for managing trust-owned assets.
- Consult your estate planning attorney for tailored advice.
If you'd like further clarification, feel free to ask!