Retirement Planning
Discover how retirement planning connects with estate planning to protect your assets and create a lasting legacy for your family's financial future.
Do I need to update my retirement account beneficiaries when I create a trust?
Retirement accounts like 401(k)s and IRAs pass directly to named beneficiaries, bypassing your trust and will entirely. You can name your trust as a beneficiary, but this often triggers immediate tax consequences for inherited accounts. Many families choose to name individual beneficiaries on retirement accounts while using trusts for other assets. Review your beneficiary designations regularly, especially after major life events like marriage, divorce, or the birth of children, since outdated beneficiaries can create unintended inheritance outcomes.
