[WSBAPT] Stocks and mutural funds going into living trust?

[Heather Kolbly]

Hi All, 

 

Client husband and wife have a revocable living trust and are wanting to
know what types of financial accounts should and shouldn’t be placed in
the trust at this time.  I know they cannot/should not place IRAs, 401K’s
and similar types of retirement accounts into the trust, since that can be
treated as an early disbursement of funds by the IRA, thus leading to
penalties.  However, what about mutual funds and stocks that are simply
owned by the clients individually or as husband and wife.  These are
intended as investments for retirement, but not necessarily, and they are
not held in an IRA or 401K.  Is it ok to place those in the trust now?  Or
should the clients leave them out of the trust and just make the trust the
beneficiary of those funds?

 

I am just looking for a quick answer to tell the clients and I am short on
time today to research it; I have also referred them to a CPA who handles
estate issues.

 

Thank you very much,

 

Heather Kolbly

 

Kolbly Law Firm, P.C.

peace of mind through planning

Wills  - Trusts - Powers of Attorney - Medical Directives 

Prenuptial/Postnuptial Agreements 

Small Business Law - Contracts - HOA Representation - Guardian ad Litem

 

Heather Tobin Kolbly

Attorney and Counselor at Law

Mail:  704 228th Ave. NE #122, Sammamish, WA  98074

Office:  (425) 522-4234 s Cell:  (425) 444-1888 

 <mailto:Heather at KolblyLaw.com> Heather at KolblyLaw.com

 <http://www.kolblylaw.com/> www.KolblyLaw.com

 

Hours:  By appointment only, including evenings and weekends.

                             

Housecalls and "workcalls" are our specialty!

 

Speaking engagements:  I am happy to come to your office, club, church,
neighborhood or other gathering FREE OF CHARGE to provide information on
the uses of estate plan documents (Wills, Trusts, Powers of Attorney,
Advance Healthcare Directives, Community Property Agreements, and
Declarations Regarding Organ Donation and  Disposition of Remains) and
answer any questions.

 

CONFIDENTIALITY: This e-mail and its attachments are confidential and may
be protected by attorney/client privilege, work product doctrine, or other
nondisclosure protection. If you are not the intended recipient of this
e-mail, please contact the sender immediately; you may not read, disclose,
print, copy, store or disseminate the e-mail or any attachments or any
information contained therein.

IRS CIRCULAR 230 DISCLOSURE: To ensure compliance with new requirements of
the Internal Revenue Service, we inform you that, to the extent any advice
relating to a Federal tax issue is contained in this communication,
including any attachments, it was not written or intended to be used, and
cannot be used, for the purpose of (a) avoiding any tax related penalties
that may be imposed on you or any other person under the Internal Revenue
Code, or (b) promoting, marketing or recommending to another person any
transaction or matter addressed in this communication.

 

 

=======================


- To contact the list administrator, send a message to:
webmaster at wsbarppt.com

- To unsubscribe, send a new email addressed to: imail at lists.wsbarppt.com,
with the following in the body of the message: unsubscribe wsbapt - OR -
send a message to webmaster at wsbarppt.com asking that you be removed from
the wsbapt list.

Information provided on this list should not be considered legal advice.
As with all lists - let the reader beware! No warranties or
representations are made as to the accuracy of any information provided.
All opinions and comments in this message represent the views of the
author and do not necessarily have the endorsement of the Washington State
Bar Association nor its officers or agents. 

-------------- next part --------------
A non-text attachment was scrubbed...
Name: winmail.dat
Type: application/ms-tnef
Size: 9178 bytes
Desc: not available
URL: <http://mailman.fsr.com/pipermail/wsbapt/attachments/20140409/460cb74d/winmail.dat>