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Funding a Trust
Posted by: ora100, May 17, 2017 12:37AM
I am working with a lawyer for a Trust and he told me the trust should include IRA's and 401K plans and the primary beneficiary should be the Trust. I am married and have 2 college age children. I have done some research and found in most instances a trust is a poor beneficiary and naming individuals as beneficiaries of retirement assets offers greater flexibility in taking advantage of stretch IRA strategy. Right now in our IRA's and 401K plans the primary beneficiary is the other spouse and the two kids are the contingent beneficiaries. My research also shows the Trust should not be named the contingent beneficiary instead of the kids. Is this accurate? I know a Trust will shield assets from lawsuits but my understanding is that IRA's and 401K plans already have that shield - is that correct? My lawyer is telling me the Trust should be the primary bene of the retirement assets and my research is telling me no. Your help is much appreciated.

Re: Funding a Trust
Posted by: DeeDee, May 17, 2017 05:38AM
Yes, run, run, run from this ignorant lawyer.

Re: Funding a Trust
Posted by: Drewremedy, May 17, 2017 01:04PM
What is it that you seek to accomplish

Re: Funding a Trust
Posted by: Sven, July 14, 2017 04:44PM
DeeDee does not speak with a forked tongue. Where do you live? If the lawyer clearly understands what you are out to accomplish, some non-conventional things possibly might make sense. I believe putting retirement assets in a trust is, as your research suggests, pretty non-conventional if only that that would pretty much obliterate the tax benefits of leaving retirement accounts to spouses.

Re: Funding a Trust
Posted by: Loranger, November 10, 2017 05:53PM
That's pretty interesting. I've never head of this being done before.

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