Discussion:Estate Beneficiaries
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Johnthecpa (talk|edits) said: | 26 June 2007 |
| A client passed away in 2006 with a "Pour-Over-Will" and a "Living Trust". Prior to death, the trust had not been funded, thus all assets (approx 5 million) are being probated. The Pour-Over-Will names the living trust as the sole beneficiary. The living trust names the decedents 5 children as beneficiaries of the trust, to receive distribution of trust assets after the death of my client.
I feel that I should list the 5 children and their social security numbers under Part 4, Question 5, of Form 706 as the "beneficiaries" (they are the ultimate beneficiaries, as the trust is a "short-term conduit"). The executor of the estate wants to list only the "trust" and the tax identification number of the trust here. I cannot find any definitive authority for either position. Any help here would be greatly appreciated. Thank You!!!!!!!!! | |
| 26 June 2007 | |
| The trust would be the listed beneficiary on the 706. Whether you like it or not, the etstae attorney is always the "definitive authority" (even when you know he is wrong. ♫) | |
| 29 June 2007 | |
| Thank you, you just answered the same question for me......next question, though, do you list the assets of the trust individually on schedule G or just one lump sum number for the value of the trust? And if there is a pour-over will, then anything other than IRAs or life insurance policies naming specific beneficiaries, or jointly owned assets (no spouse), would become part of the trust (did I miss any other possibility?), right? thanks! | |
| 29 June 2007 | |
| Hi Lisa according to the question the trust is not funded. You list the assets as owned by the decedent in his own name on the proper schedule. If the trust was funded you list the assets separately on sch G as held by the trust in their respective accounts. Any assets passing by law or contract would not go to the trust unless designated to the trust correct. bye | |
| 29 June 2007 | |
| thanks Wes, but doesn't the pour-over will then automatically fund the trust at death? I still list the stocks held in her name on Sched B and not G? sorry for the re-address but I need a clarification .... | |
| 29 June 2007 | |
| In a typical pour over situation assets are transferred to the trust during or at the end of administration. | |
| 29 June 2007 | |
| thank you Dennis, so does that mean I list the stocks on Sched B and not G since the title was not changed to the trust during her lifetime, but I do not list the beneficiaries of thoses stocks separately on 706 (see original question from Johncpa above), but just the trust and it's ID number? | |
| 29 June 2007 | |
| Hi yes the pour over trust is funded as Dennis notes at the end of administration witch could be a year more or less. So again you list the stocks if held by the decedent's name at death on the schedules for real estate stocks cash etc. The trust at death did not own anything so nothing goes on G. bye | |
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