What to put into a revocable trust?

[NastyWoman]

I have a living revocable trust that needs to be fine tuned. Currently I don't have my 401k in there becauser I was told (pre-YMAM years) that it was not a good idea to do so. However, I don't remember why that was.  Today, a RL friend was telling me that he was setting up his trust and he was advised to his 401k in there.

Now I am wondering what should be in/excluded from a trust? 

Please let me know what and why...

[ArchietheDragon]

A bottle of 1956 Chateau de Rosenbleau.   It will age beautifully in there.

[Deleted]

Feb 23, 2016 20:35:23 GMT -5 ArchietheDragon said:

A bottle of 1956 Chateau de Rosenbleau.   It will age beautifully in there.

That has not been my experience.

[Ombud]

Anything that can have a POD / TOD doesn't need to be in the revocable trust. That includes investment accounts, bank accounts, retirement plans, and life insurance. It is faster / easier if outside trust. The beneficiaries will simply need a certified death certificate for it to be dispersed according to how you predetermined. I have most accounts set at 50/50 but grandkids inherit 1 account split between them.

Property and collectibles (coins, paintings, ect) over your state's small estate affidavit limit ($150,000 in CA) should be in the trust which the executor (not bank / investment firm / insurance company) will handle.

Whether you need more detailed planning depends on debts / age of offspring / ect

[tskeeter]

Feb 23, 2016 20:31:46 GMT -5 NastyWoman said:

I have a living revocable trust that needs to be fine tuned. Currently I don't have my 401k in there becauser I was told (pre-YMAM years) that it was not a good idea to do so. However, I don't remember why that was.  Today, a RL friend was telling me that he was setting up his trust and he was advised to his 401k in there.

Now I am wondering what should be in/excluded from a trust? 

Please let me know what and why...

Because laws vary by state, I think you need to ask that question of an estate planning attorney in your home state.

[Ombud]

Definitely on the small estate affidavit limits but anything with a POD / TOD clause passes outside of probate as a totten trust.

A Totten trust (also referred to as a "Payable on Death" account) is a form of trust in the United States in which one party (the settlor or "grantor" of the trust) places money in a bank account or security with instructions that upon the settlor's death, whatever is in that account will pass to a named beneficiary.

en.m.wikipedia.org/wiki/Totten_trust

[skubikky]

I've been doing a lot of reading with regard to making a trust the beneficiary of a 401(k) or IRA.
There are some drawbacks to it.  And to leaving an IRA to a beneficiary as well, which becomes an "inherited IRA".
A recent court decision has decided that inherited IRAs do NOT have the same protection as regular IRAs and can be subject to bankruptcy, divorce and creditors.

www.forbes.com/sites/deborahljacobs/2014/09/04/iras-and-trusts-what-you-need-to-know/#3481e00e1da5

Start reading here.   Deborah Jacobs gives the best explanations that I've seen.