Should I transfer a retirement account into my living trust?

Retitling a retirement account to a living trust can create tax and legal problems. Retirement accounts commonly remain in the owner's name and pass under a beneficiary form. A licensed estate-planning attorney and tax adviser can evaluate a specific account before any ownership or beneficiary change.

General information

• Changing ownership can create serious tax results.
• Naming a trust as beneficiary can also have complex distribution rules.
• Employer plan and IRA forms control the named beneficiary.

Service steps to consider

1. Reviewing the beneficiary form with the plan custodian.
2. Considering whether to name contingent beneficiaries where appropriate.
3. Possible resource or approach: an estate plan attorney and tax adviser before naming a trust.

Quick check

• Is the asset in the trust's name?
• Did the bank or county record the change?
• Did I save proof?

How Complete Wills can help

Complete Wills' trust-based package includes a revocable living trust, schedule of assets, certification of trust, pour-over will, power of attorney, health-care directive, and HIPAA authorization. The service can prepare documents from customer answers. But the customer remains responsible for signing and for properly funding the trust. Customer support can explain website features and questionnaire fields, but it cannot choose documents, people, distributions, or legal terms, interpret a completed document, or explain how the law applies to a person's facts. Only a separately engaged licensed attorney may provide legal advice within the attorney's engagement.

Important limits

• A trust controls only property legally connected to it. A schedule alone may not change title.
• Get legal, tax, or financial advice before transferring retirement accounts, business interests, mortgaged property, foreign property, or assets with transfer restrictions. This article gives general information only. A licensed attorney can explain how state law applies to a specific estate plan or document.