What NOT to Put Into a Trust - YouTube

Hi. Lee Philips here.

I want to talk to you for two seconds

about living revocable trusts

we've talked about that a lot in a lot of other YouTube videos

but this one I want to talk about what NOT to put into your living revocable trust.

There are things that don't go into a little revocable trust.

For example

an IRA is unique to you

you have to own that IRA

it can't go in the trust

you could maybe make the beneficiary of the IRA the trust

but you would never make the owner of the IRA the trust.

You're the owner. You have to be the owner.

You're the only one that can set up an IRA.

Beneficiary, trust?

Making the trust the beneficiary of the IRA now you would do that in the IRA document

not in the trust

that's a whole another discussion on another YouTube

but you can

yes and no.

You're not going to put any of the ERISA

the Employee Retirement Income Security Act stuff

that's your 401k

you will be the owner of the 401k

and actually the 401k and the IRA are both trusts.

So you name a beneficiary

you have a trustee

and so we won't make the owner

of your 401k or your SEP or whatever it is

or your formal 3B or whatever

you won't make your living revocable trust the owner.

That's a contract basically between you

and the company providing the service

the "trusteeship"

of the retirement plan

or the benefit plan.

Now you will name beneficiaries

for your 401k or SEP or whatever it is

those are normally going to be

the children or the spouse first and then the children

you could have a living revocable trust act

as the beneficiary for the children

now I like I said that's another story

but you will not put that stuff into the IRA

or excuse me into the trust.

You'll put things that you sign for

that aren't actually already a trust.

Other things you don't have to put into a trust

you could mention them

but you certainly don't have to put them into the trust

and that is anything that you can transfer

and not have to have a written signature

in order to make that transfer.

I tell people

if you can take it out on the front lawn

and sell it at a yard sale

and not have to sign for it,

you don't have to put it in the trust.

Or if your neighbor can break into the house

and get that thing that asset

and then sell it without your signature

you don't need to put it into the living revocable trust

now they can't break into your garage

take your car and sell it without your signature

your signature has to go on the title

in order to transfer the title.

They can't break in and get into the bank account

because your signature is on it.

They can't sell your piece of real property your signature's on it.

Those are the things that you DO put into a trust.

So basically the only things that you're not going to be putting into a trust

are things that don't require your signature

and they could be mentioned in the living revocable trust

particularly if you have a schedule that allows you to distribute personal items

that would be attached to the back of the trust

and that's the way you avoid the family

fight but you could mention specific things that

don't have to have your signature

but you don't need to mention those-- there's no probate on them

and what we're doing is avoiding probate

there isn't any probate on the 401ks

or the IRAs either

because you've named beneficiaries

and their unique to you

you have to be the owner of the IRA like I said.

So other than the retirement plans

and stuff that doesn't require your signature

there aren't a lot of things that you wouldn't--not--put into your living revocable trust.

This is Lee Phillips talking about things you DON'T put into your living revocable trust