Revocable living trust?

Question

My wife and I have designated the primary beneficiary of our TOD individual investment accounts to be our living trust. We've also made the trust the contingent beneficiary of our IRAs. Should we include these accounts in the property schedule of our trust declaration? If so, how should we describe them in the property schedule?

Answer 1

Do you have children?  Even if you don't, might I suggest that you read "The Retirement Savings Time Bomb and How to Diffuse It' and "Parlay Your IRA Into a Family Fortune" both by Ed Slott.  By making the Trust the beneficiary of your IRAs and your investment accounts you may be , unwittingly, setting your family up for a huge tax bill when you pass away.  The are proper and legal ways to fill out the beneficiary designation form so that you can avoid losing 50% or more of your IRA to taxes.