We have a CD that was originally titled in the name of two individualls, (Jane Doe or Mary Smith). Jane created a irrevocable trust and Mary was the trustee and sole beneficiary. We allow Mary to change ownership of the CD to that of the irrevocable trust without issuing a new CD. Now Jane has died adn Mary wants to change ownership of the CD back to herself personally. I don't have an issue with putting the asset in the trust but I have one with simply changing ownership now. Am I thinking of this wrong? I would appreciate all your help.

Once the change was made transferring the CD to the trust, further changes are governed by the terms of the trust. What you need to determine is whether Jane's death affected the trust, and how. Perhaps Mary continued as trustee and beneficiary; perhaps the terms of the trust changed that on Jane's demise.

You also have to consider the interest reporting. First the CD was opened using a SSN. When the CD went to the name of Irrevocable Trust an EIN was required. Moving the title back to an individual means the TIN is a SSN again. What an interest reporting nightmare. You may want to check with the person that handles your year end interest reporting to see how they may want it handled as well. My recommendation would be to close the CD and open a new one under the individual name.