Many assets ought to be titled in the name of the living trust. These include bank accounts, non-qualified [not IRA/401(k)] investment accounts, real estate, LLC and partnership interests, etc. On the other hand, IRAs, 401(k)s, life insurance, and annuities typically pass by beneficiary designation. (special circumstances might change this) A contingent beneficiary is a “second in line” person or trust that receives the account on the death of the owner if the primary beneficiary is deceased.
Very informative- question: my wife and I each have separate Treasury Direct accounts to buy I-Bonds annually. Will you please comment on the pros and cons of funding our living trust with these accounts? It’s complicated for several reasons, including the annual purchase limits of I-Bonds per person.
I-Bonds can be tricky because of the annual purchase limit. Some coupes buy them separately so you can buy twice as much. If the assets are outside of the trust when a person dies, a probate may be required. We would be happy to review your mater on an individual basis.
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Add the trust as contingent beneficiary in all your investments accounts
Many assets ought to be titled in the name of the living trust. These include bank accounts, non-qualified [not IRA/401(k)] investment accounts, real estate, LLC and partnership interests, etc.
On the other hand, IRAs, 401(k)s, life insurance, and annuities typically pass by beneficiary designation. (special circumstances might change this)
A contingent beneficiary is a “second in line” person or trust that receives the account on the death of the owner if the primary beneficiary is deceased.
I love this video, its allowing me to understand real life examples in taking my CLU (Chartered Life Underwriter)Designation
I'm really glad you found it useful, thank you!
Very informative- question: my wife and I each have separate Treasury Direct accounts to buy I-Bonds annually. Will you please comment on the pros and cons of funding our living trust with these accounts? It’s complicated for several reasons, including the annual purchase limits of I-Bonds per person.
I-Bonds can be tricky because of the annual purchase limit. Some coupes buy them separately so you can buy twice as much. If the assets are outside of the trust when a person dies, a probate may be required. We would be happy to review your mater on an individual basis.
What happens if you overfund an ILIT?
By overfunding, do you mean not all money is going into a life insurance policy? Or if the life policy becomes a Modified Endowment Contract?
Hi i enjoy your videos. Thank you. Ive subscribed. Theyre a little too long
Thanks for subbing! Most of our content is about an hour because we go very in depth, but thank you for the feedback. Here are some of our shorter videos:
czcams.com/video/8-x1xDiqRWQ/video.html
czcams.com/video/BAiQ_-Ng1LU/video.html
czcams.com/video/WFP6LXtbEvw/video.html
czcams.com/video/Lh9OgTgmEr4/video.html
czcams.com/video/ttaypDcsH0o/video.html