Should I Create a Revocable Trust Now if I Plan to Move in a Few Years?
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Question:
As retirement gets closer and you own your home with approximately $1 M in assets including 401(k)s, savings, and stocks, is it still advisable to obtain a living trust in the present even though your place of residence may change in a couple of years? How expensive are they to change?
Response:
Yes, I think so. If you’re planning on moving soon, you might not transfer your home into the trust and wait to take that step with your new residence. But transferring your savings and stocks into the trust won’t be affected by your moving. You can’t transfer your 401(k) or IRAs into trust. Whether the trust should be a beneficiary of these retirement accounts depends on a number of factors, depending in large part on beneficiaries’ situations.
For instance, if you are in a second marriage, you may want your spouse to have the benefit of your retirement plan but for any funds remaining at her death to pass to your heirs. Or if any of your children has a disability, financial challenges, or is in a difficult marriage, you might want to protect what you leave them by having it payable to trust rather than going to them outright. You can discuss these options with the estate planning attorney who draws up your trust.
The cost to change a trust isn’t huge and a trust created in one state is still valid if you move to a new state.
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