Ask Terry Questions Do I need a trust

Do I need a trust

By Terry Savage on October 22, 2023 | Financial Planning / Retirement

I am a 74 y/o single woman who has lived with the same man for 54 years. We have a son who is 50. My partner and I jointly own a home all other finances separate. I have a well funded retirement plan that splits the beneficiary 50/50 between my son and life partner. Should I have a trust? If so for the home only or all my finances. My FP said the beneficiary takes precedence over any trust so not needef

Terry Says

The named beneficiary on a retirement plan does take precedence over a trust document after you die.
BUT a revocable living trust — and retitling you home and other financial accounts on the name of the trust — will make life much easier if you are alive but incapacitated. The two of you could be co-trustees, if that is your only named asset aside from the retirement accounts. There is no tax consequence for putting the house into the RLT.
And you both need a healthcare power of attorney and a living will! Or you may not even be allowed to visit each other in the hospital if you aren’t married!
See an estate planning attorney promptly.

And are you aware that your son will ONLY receive his proceeds from the retirement accounts, and nothing else, upon your death?

Recent Financial Planning / Retirement Questions



a personal
finance question