Ask Terry Questions Beneficiaries of trust vs checking accounts

Beneficiaries of trust vs checking accounts

By Terry Savage on March 15, 2024 | Financial Planning / Retirement

What do I designate as “beneficiaries ” for a family trust. Know that IRA’s and annuities and other investments should have the family trust as beneficiaries, but what about checking accounts, savings accounts?

Terry Says

No no no. Did you already set up a REVOCABLE LIVING TRUST? If not, watch this:

The attorney who set up your RLT will direct you to change the title on your investment accounts, house, etc to the name of your RLT. It uses your SS number, so that should not be a problem, with the correct documentation.
Then, if you die or become incapacitated,the successor trustee you name for your trust can take over all these accounts.

BUT, your retirement accounts, though requiring a beneficiary be named, should generally NOT be using your RLT as beneficiary. Instead,you’ll want to name individuals to receive the money directly. The tax advantages of naming an individual have changed in recent years, but if you do have individuals you want to get the money, do it directly.
Only if you don’t have any other beneficiary to name, would you use your trust as beneficiary.

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