The following is my
answer to a Quora question: “Should I name my trust the
beneficiary of my retirement account?”
If you do not, that fund is yours to do as you wish. If you do, that fund is still yours to do as
you wish eventually, but the trust is treated as a distinct entity. This allows you to mitigate your tax
liability, protects your retirement funds from legal action and bankruptcy, and
shields you from settlement claims such as from an acrimonious divorce. I am assuming here that you are the settlor,
sole trustee and beneficiary of your own trust.
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