Change of beneficiary on ITF account

Generally speaking, an "ITF" designation creates no ownership rights for the designated beneficiary. The owner of the account (trustee) retains all ownership rights until the account is closed or the trustee dies. The beneficiary gains rights in the account only on the death of the owner/trustee.

The owner's rights are the same as if the ITF designation did not exist, so the owner/trustee has every right to change the beneficiary, without notice to the former beneficiary, and to close the account or change account type.

First published on BankersOnline.com 11/29/04