Revocable Trust with minors in California, which accounts to retitle?

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cliffedelgado
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Revocable Trust with minors in California, which accounts to retitle?

Post by cliffedelgado » Mon Jan 13, 2020 6:45 pm

I will be talking with an attorney next week on setting up a trust. We are in California. We have two kids in elementary school and want to set up a revocable trust in case we are incapacitated or dead before the kids are of age. I'll try to ask the attorney, but wanted to get the BH collective wisdom as well.

I am confused on when/what accounts should be re-titled in name of the trust or when to put the trust as primary/secondary beneficiary. Any help in that regard would be appreciated.

I am thinking some cash/brokerage accounts need to be retitled so that in the event of both spouse and I incapacitated but not dead (or 1 dead, 1 incapacitated), there is money to take care of the kids. All the POD/TOD/beneficiary accounts seem untouchable if we are merely incapacitated.

1) 401k - cannot retitle in trust. Spouse as primary, trust as secondary. If no secondary, put trust as primary.
2) Roth IRA - cannot retitle in trust. Consider establishing IRA stretch trust as beneficiary so money remains in Roth IRA for as long as possible.
3) Brokerage - retitle some accounts so there is money to take care of the kids. for other accounts, spouse as primary, trust as secondary. if no secondary, put trust as primary.
4) ESPP - unlikely can retitle in trust. Spouse as primary, trust as secondary. If no secondary, put trust as primary.
5) Options - spouse as primary, trust as secondary. If no secondary, put trust as primary.
6) House - retitle in trust
7) Checking/savings - retitle
8) CDs - no need to retitle, spouse as primary, trust as secondary. If no secondary, put trust as primary.

Spouse and I will be co-trustee and my brother will be successor trustee as well as guardian for the kids.

Any comments on the plan? I am probably missing something. Thank you

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