Estate Documents
Terry, thank you for your time. What does it mean to “fund” a trust? Can a 401(k) beneficiary be my trust?
Terry Says
First, please watch this video:
https://www.terrysavage.com/wp-content/uploads/2022/10/Terry-Talks-Wills-Trusts-Estate-Planning.mp4
It will answer a lot of your questions.
Specifically, your 40l(k) should have an INDIVIDUAL as beneficiary — not a trust. And individual may have more options when they inherit your 40lk or IRA.
And if you’re talking about a Revocable Living Trust, per the video above, you don’t FUND the trust; you just name your non-retirement accounts in the name of the trust. No tax consequences.
