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