Has anyone else created a trust?

nj2011mom
Fri, 05 Sep 2014 02:51:38 +0000

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).

We asked our estate attorney about making the trust the beneficiary of our 401k accounts and he said not to do it.