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Living Trust

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DolphinVJ

Guest
I live in California. I am a little confused as to what should be retitled to the name of Living Trust and what should not. I have 403(b), employer funded retirement accounts, and my personal non-retirement investments. I also have 2 automobiles. As far as my Living Trust document is concerned it does cover "securities" and "automobiles". Is it okay to retitle the automobiles into the Trust's name - I have heard varying opinions. If not, what is the reason. As for the retirement and non-retirement investment accounts I have been told to choose my "Living Trust" as the beneficiary so that these accounts will flow to the Living Trust upon death. Is this correct? If not, how should I retitle? Would these accounts be subject to probate if over certain $ amount? Thanks for your help.
 


ALawyer

Senior Member
If you have a living trust you had prepared by a lawyer, you really should ask the lawyer. Generally cars are a hassle to hold in a trust as insurance companies get confused. I used to tell clients not to even try it.

As for the 403b and similar plans, you could name the trust as beneficiary, but sometimes usimg a benefoiciary designation is just as good or better, although you may want to balance out what you leave one way or the other (for example if 2/3rds of your assets are in a 403b, the trust beneficiary gets the bulk of the estate.

IF you did a living trust on your own, without a lawyer, you may be in more trouble than you think. Get it professionally reviewed!
 
D

DolphinVJ

Guest
ALawyer

Thank you for your response. Can you please elaborate what you meant in your answer that 403(b) assets should be balanced out if I choose my Living Trust as the beneficiary on my 403(b) beneficiary designation form.

Is it okay to designate my Living Trust as the beneficiary on my non-retirement investments (stocks, mutual fund, etc) as well?

How do you define "securities" as used in the Living Trust? Does this mean to include stocks, bonds, mutual fund, etc?

I live in California. Thanks again!
 

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