<p>I am going bonkers trying to add our newly created trust as a beneficiary on all our accounts. Our attorney gave us the language to use, but so far, none of our banks/IRAs want to accept his wording. Also, when my husband and I die, our trust splits into 3 sections, one for each of our kids. Is that normal? Or is he just trying to make more $$? He wants IRA accounts listed as 1/3 to the trustee of each child’s component trust. Then he had the nerve to tell me that all of his clients are running into this problem.</p>
<p>We have had no problems getting banks to accept the trust titling that our attorney created. We are NOT using it for everything–you should double-check with your attorney where it needs to go. It only lists trust as contingent beneficiary for IRAs with the spouse as primary beneficiary. The trust has info as to how it is divided up once there is a death. Our trust will hold the funds until our kids reach age 30 (I believe) and then disburse to them equally). I think it is normal for trusts to be divided equally among your kids, IF that’s what you want. If your kids are still minors, under age 18, that creates slightly more issues than for those of us whose kids are over 18 and don’t need a guardian.</p>
<p>We created a special needs trust for our disabled daughter.
The lawyer provided the exact language to submit as contingent beneficiary for our IRA s and 403b plan and we had no trouble getting it accepted.</p>
<p>We have all of our life insurance owned by separate trusts - one is mine w spouse as trustee and I’m trustee of his. It wasn’t that big of a deal to sign the policies over. We set up checking accounts for each - non-interesting bearing, as we don’t want income in the trust and every year we ‘gift’ the amount of the premiums to the trust. (you do this to keep insurance proceeds out of the taxable estate). </p>
<p>We asked our estate attorney about making the trust the beneficiary of our 401k accounts and he said not to do it. </p>
<p>Here’s an article that explains what my attorney is trying to do, but they admit it’s complicated:</p>
<p><a href=“Investing Resources | Bankrate.com”>http://www.bankrate.com/finance/retirement/naming-trust-ira-beneficiary.aspx</a></p>
<p>Your attorney is absolutely doing the right thing (presuming that you made a decision that you want your IRA money to be paid into trusts when you die, rather than going directly to your children). There’s real benefit in having a separate trust for each of the kids at that point – both significant tax benefits and significant non-tax benefits. The hangup is probably that the three separate trusts don’t exist yet, and don’t have separate tax IDs, and the banks maybe want separate tax IDs for each of the beneficiaries.</p>
<p>I have never had this problem, so I am not certain how to resolve it. You could maybe create the three trusts now?</p>
<p>Thanks for the article link. We have a second appt. on Monday with an estate attorney to start the process of setting up a trust. She may have covered this information in the first appt., but that was over a month ago, and I can’t remember half of what she said. Will be asking her about this. </p>
<p>We didn’t put each kid in a separate trust, we have the trust and it disburses. There are tax planning steps for A trust B trust to be created when one of us dies. We named a bank as trustee if both of us die. We didn’t put the IRA’s into the trust, but house and stock accounts were easy. The IRA’s have the kids as beneficiaries not the trust. We probably need to review it for tax issues, but I think if the kids keep the IRA’s as IRA’s they can just use them for themselves. </p>
<p>I helped my dad put his accounts (checking, CDs) into his trust. It was not a problem at all. But again, the trust is whole and then disburses when it is wrapped up. Sounds sort of like your are trying to disburse ahead of time, which I hadn’t heard of. Dad did put all kids names on the deed of his property, long long ago so didn’t put it in the trust. That took only a little work as I recall, but it was a LONG time ago.</p>
<p>Do some of you have irrevocable trusts? How do they work out? We have one we’d like to move from a high-fee bank. No luck so far. They are not giving up the account.</p>
<p>
</p>
<p>No. My first beneficiary is my husband, but the second is the kids, all of them. Attorney explained that the trust splits, upon both of our deaths. IRA payouts have tax consequences, so he thinks the smartest move is to have each kid with his own component trust. I can’t believe how confusing this all of this has gotten. I’m worried that when our trustee sees the mountain of paperwork, he’ll back out.</p>
<p>Mine suggested trust for the kids but I think it’s too complicate. I’m set up like esobay, set up the trust for houses only. Because it has no beneficiaries. I don’t have IRAs going to trusts because I list my husband and kids as first and secondary beneficiaries. If you google, some suggested it’s not good idea to put IRA in trust. But others might give a different opinion on that.</p>
<p>My former friend inherited all from her spouse. She and her kids had a falling out (due to her drinking) and she cut the boys out. Lesson learned is to distribute by %. My lawyer (and friend) put my house into my Trust, and she is executor of estate. I don’t want a bank to be in charge.</p>