When should I consider naming a trust a beneficiary of a California estate plan?

When creating your Orange County estate plan, careful consideration should be given to the beneficiary designations on your retirement accounts. The laws, rules, and regulations surrounding these assets are complex and require the knowledge and guidance of an experienced estate planning professional. In some instances, it may be preferable to name your living trust as a beneficiary of a retirement asset. In other instances, you may decide to name an individual. Your Orange County estate planning attorney will help guide you through this process when creating your plan.

Examples of instances in which you might choose to name your trust as the beneficiary of your retirement assets include:

  • When you want to allocate the retirement benefits to a trust for your surviving spouse, such as to a QTIP trust.
  • When you want to allocate the retirement benefits to a trust that will benefit your children or grandchildren.
  • When you want to allocate the retirement benefits to a charity, held in trust.
  • When you need to allocate the retirement benefits to a credit shelter trust in order to take advantage of an estate tax savings trust plan.

Retirement assets could include IRAs, 401(k)s, 403(b)s, pensions, and many other types of plans and benefits. Significant income tax, estate tax, and required distribution rules could be triggered if you do not carefully plan for these assets when creating your estate plan. To learn more about how to address your retirement assets during the estate plan creation process, contact the experienced Orange County estate planning attorneys at the Law Office of James F. Roberts & Associates, APC. Call our office today at (714) 459-5481 for a consultation.

James F. Roberts
Founder and owner of the Law Office of James F. Roberts and Associates, a premiere estate planning law firm