Which Assets Go in a Living Trust, and Which Need a Beneficiary Review?
Suppose you have a savings account and an IRA at the same financial institution. Your estate-planning attorney has given you instructions for both: put the savings account in your revocable living trust and confirm who will inherit the IRA. You can handle both tasks in one call, but you need two different records.
For the savings account, ask for the account title. It tells you who owns the account today. For the IRA, ask for the beneficiary designation. It tells you whom you’ve named to receive the account after your death. A home, a bank account, or a taxable investment account may be appropriate for trust ownership. An IRA, a workplace retirement plan, or a life insurance policy calls for a beneficiary review. Your estate plan determines the intended result for each asset. Fidelity’s estate-planning checklist
The savings account: Who owns it today?
Start with the instructions your attorney gave you for this specific account. If the plan calls for you to hold the savings account as trustee, ask the bank:
“What is the full ownership title on my savings account? If I need to change it to hold the account as trustee, what paperwork do you require?”
Suppose the banker answers, “Your trust is already listed.” There’s one more question to ask: “Where is it listed?” The trust might appear in the ownership title, or it might be named as the payable-on-death beneficiary. In the second case, you still own the account personally during your lifetime. The bank has instructions to pay the trust after your death. Either arrangement may be intentional. Check which one your plan calls for before changing anything. Fidelity’s explanation of account titles and payable-on-death designations
If the bank changes the title, ask for a record showing the new ownership. Our guide walks through what to check when the confirmation arrives: How Do I Know If My Living Trust Is Funded?
The IRA: Who is named to inherit it?
Keep the IRA in your name during your lifetime. Ask the firm that holds it for the current beneficiary designation on file. Check both the primary beneficiary, your first choice, and any contingent beneficiary, your backup. Look at the names and percentages the firm actually has on record. IRS guidance on retirement beneficiaries
Suppose your IRA lists your spouse as the sole primary beneficiary, and the backup field is blank. If your plan calls for your children to inherit should your spouse die first, you’ve identified a specific gap. Ask the IRA provider how to submit that designation and how to confirm it was accepted.
If you’re considering naming the trust itself as an IRA beneficiary, bring the current designation and your trust document to your estate-planning attorney and tax adviser first. The beneficiary you choose can affect when money must come out of the inherited IRA. A surviving spouse can also have options that other beneficiaries do not. IRS guidance on inherited IRA distributions
Which record should I pull for each asset?
| Asset | Record to pull | What to check |
|---|---|---|
| Checking, savings, or CDs | The bank’s ownership record and any payable-on-death designation | Does the plan call for trust ownership during your life or payment to a beneficiary after death? Ask the bank to confirm the arrangement on file. |
| Taxable brokerage account | Account registration and any transfer-on-death designation | Check who owns the account today and whether the brokerage has separate instructions for when you die. |
| Home or other real estate | Current recorded deed | Ask an estate-planning attorney in the state where the property is located whether trust ownership fits your plan. Joint ownership, a mortgage, and state rules for a primary residence can matter. |
| IRA or workplace retirement plan | Beneficiary designation from the IRA provider or plan administrator | Check primary and backup beneficiaries. For a workplace plan, ask whether spousal consent is required for your intended choice. |
| Life insurance | Beneficiary confirmation from the insurer | Check who is named to receive the proceeds and in what shares. If your plan calls for payment to a trust, confirm the designation with your attorney and insurer. |
For more detail, see The Florida Bar’s explanation of trust ownership and deeds, Fidelity’s guide to how assets pass at death, and the IRS overview of retirement beneficiaries.
Start with one beneficiary form
Choose one account you haven’t reviewed since signing your trust. Get its current beneficiary record, compare it with your plan, and write down any question while the record is in front of you. Use Appendix C: Beneficiary Audit Sheet (PDF) to keep track as you work through the rest.
For a guided review of your whole plan, The 21-Day Revocable Living Trust Blueprint walks you through building an asset inventory, tracking transfers, checking beneficiaries, and organizing the records your successor trustee will need.