Does my trust replace beneficiary forms?

Question

I have a living trust, but my retirement accounts and life insurance still have individual beneficiary forms. I am confused about whether the trust automatically replaces those forms or whether the financial company will follow whatever beneficiary is listed on the account. If I want certain money to go into the trust for management after my death, do I have to name the trust directly on the beneficiary form?

Soradin · Accepted Answer

No, retirement plans, insurance policies, and payable on death accounts follow their own beneficiary records. For the issue described here, a will and a revocable trust perform different jobs. For the issue described here, a trust can manage funded assets during life and after death, while a pour over will can name guardians and direct remaining probate assets into the trust. This is a situation where professional review is particularly useful when the plan touches family dynamics, property, taxes, or a business.

Does my trust replace beneficiary forms?

Soradin

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