If I open accounts and designate trustees and beneficiaries, can I keep these confidential until my death? How will a bank prevent information from reaching a trustee or beneficiary while I am alive?
If the accounts themselves are in the form of "in trust for" (ITF) or "pay on death" (POD) accounts, you can ask the bank to try to prevent the name(s) of the beneficiaries from showing on bank statements and other mailings. It's sufficient for the bank's, and FDIC's purposes to have the account indicate it's held in an ITF or POD status, and the backup documentation can indicate who the beneficiaries are.
Arrange for your attorney or a trusted family member to have the information kept current if you change the beneficiary designations at the bank, so that the arrangements can be quickly revealed after your death. Why? Because you shouldn't put that information in your will in case you change your mind about who gets those accounts; leaving outdated information in the will will confuse people and upset them, and updating your will can be cumbersome and cost money.
Also, the trusted confidante should have the information so he or she can let the beneficiaries know of your generosity so they can claim their funds. Too many times accounts like these are surrendered as abandoned property because no one knew they existed and the banks either didn't know of the depositor's death, didn't know how to contact the beneficiaries, or didn't make the extra effort often needed to do so.
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If the accounts themselves are in the form of "in trust for" (