Should I put my IRA into the Revocable Living Trust name?

Submitted by Greg Koch on Tue, 2016-02-23 20:40

Should I put my IRA into the Revocable Living Trust name?
What are the pros & cons of listing the trust as a life ins. beneficiary?



Submitted by Bruce Steiner on Tue, 2016-02-23 23:00

  • You can’t put an IRA into a trust.  You can name a trust as the beneficiary of your IRA.
  • The disadvantage of naming a revocable trust as the beneficiary of life insurance is that there’s a risk the proceeds will become subject to your creditors.
  • The disadvantages of naming a revocable trust as the beneficiary of an IRA are that there’s a risk the IRA benefits will become subject to your creditors, there’s a risk it will destroy the stretch, and it may create unnecessary complexity.
  • While revocable trusts make sense in some cases, and in some states, they’re overhyped and oversold, and for most people aren’t necessary and tend to be a distraction.

Add new comment

Log in or register to post comments