Who owns it?

[Guest just asking]

Bob has had a Profit sharing Keogh for years.

ABC Inc. is the Trustee and Plan Administrator.

The assets are held in custodianship at XYZ Inc., a brokerage clearing firm.

The account is titled:

Bob Doe P/S Keogh w/ ABC Inc, Trustee

Who "owns" the account? Is it Bob Doe? Or is it ABC, Inc. who owns it FBO of Bob Doe?

If Bob Doe passes away is it the account of a deceased person? Or is it viewed as the account of the Trustee?

Thank you

[Belgarath]

It is owned by ABC as Trustee. If Bob Doe dies, the Trustee is responsible for distributing the plan's death benefit to Bob's beneficiary(ies) that he has on file with the Trustee. Depending upon the plan language and whether there are other participants, etc., the entire assets are not necessarily payable to Bob's plan beneficiaries. You'll have to check the document language which will define what the death benefit is, and how the determination is made as to whom the benefit is payable.

[david rigby]

The lesson is that Bob (and any other participants?) should make sure there is a valid beneficiary designation on file.

[E as in ERISA]

In a trust, there is a legal and a beneficial owner. ABC is the legal owner; Bob is the beneficial owner. So ABC FBO Bob is a good description of the ownership. Although ABC has the legal ownership, it cannot benefit itself.

[Kirk Maldonado]

Make sure that applicable state law permits the corporation to act as the trustee. Some states (e.g., California) preclude corporations from acting as a trustee.