Trust Planning: More than just a “Person” May be the Beneficiary of Pay-On-Death or In-Trust-For Accounts
February 2, 2009
The court evaluated Florida law to determine whether a corporation qualified as a “person” permitted to be beneficiary of a pay-on-death or in-trust-for account under Section 655.82, Florida Statutes. The decedent had established a bank account titled in his name “In Trust for The Salvation Army.”
The 11th Circuit affirmed the lower court’s decision in favor of The Salvation Army, looking to Florida Statutes, Chapter 1, Section 1.01(3) that a ‘person’ includes: individuals, children, firms, associations, joint adventures, partnerships, estates, trusts, syndicates, fiduciaries, corporations, and all other groups or combinations. The court then held that a corporation may be a beneficiary of a pay-on-death account and, as a result, The Salvation Army was a proper beneficiary.
The Catch…What you need to know is that under Florida Statutes, a “person” as the beneficiary of a pay-on-death or an in-trust-for account may include individuals, children, firms, associates, corporations, joint adventures, partnerships, estates, trusts, syndicates, fiduciaries, and all other groups or combinations.
Belanger v. The Salvation Army, 556 F.3d 1153 (11th Cir. 2009)
The court evaluated Florida law to determine whether a corporation qualified as a “person” permitted to be beneficiary of a pay-on-death or in-trust-for account under Section 655.82, Florida Statutes. The decedent had established a bank account titled in his name “In Trust for The Salvation Army.”
The 11th Circuit affirmed the lower court’s decision in favor of The Salvation Army, looking to Florida Statutes, Chapter 1, Section 1.01(3) that a ‘person’ includes: individuals, children, firms, associations, joint adventures, partnerships, estates, trusts, syndicates, fiduciaries, corporations, and all other groups or combinations. The court then held that a corporation may be a beneficiary of a pay-on-death account and, as a result, The Salvation Army was a proper beneficiary.
The Catch…What you need to know is that under Florida Statutes, a “person” as the beneficiary of a pay-on-death or an in-trust-for account may include individuals, children, firms, associates, corporations, joint adventures, partnerships, estates, trusts, syndicates, fiduciaries, and all other groups or combinations.
Belanger v. The Salvation Army, 556 F.3d 1153 (11th Cir. 2009)