Frequently Asked Questions (FAQs)

Funding a Living Trust

Should I re-title my retirement accounts or life insurance policies in my name as Trustee of my trust?

No. Retirement accounts, such as IRAs and 401-Ks, should not be re-titled in your trust name; doing so will accelerate all of the deferred income. Such accounts will avoid probate because upon your death, the proceeds will be distributed directly to the beneficiaries you have named. Life insurance will also be distributed upon your death to the beneficiaries you have named.

You can name your living trust as the beneficiary of your retirement accounts or life insurance. However, we generally recommend that you do not name your trust as the beneficiary of your retirement accounts unless your intended beneficiaries are minors or otherwise unable to manage their affairs.

“I shall never accept that the law can be used to justify tragedy, to keep things as they are, to make us abandon our ideas of a different world. Law is the path of liberty, and must as such open the way to progress for everyone.”

- Oscar Arias Sanchez