Living Trust

[VondenHogenBeaverHausen]

Recently I've seen quite a few financial accounts with stencils / addresses showing things like revocable living trust.

Is it possible to have an IRA titled with this revocable living trust?

What is the benefit of this type of stencil for accounts? They seem to have the taxpayers social security number linked to them.

Mahalo.

[OldJack]

A revocable living trust has no tax effect until death of the grantor, therefore, the trust does not file a trust tax return until death. All accounts owned by the revocable living trust (stenciled as you call it) is still 1040 taxable to the grantor under his social security number. A revocable living trust does not save any income tax, rather it is to avoid probate court and save estate taxes.

An IRA can be listed and titled in the name of a revocable living trust where the owner wishes the beneficiary to be the trust so the IRA proceeds are distributed in various ways and time. The beneficiary (trust or individual) always has to pay income tax on an IRA. In most cases it is better and simpler to just designate individual beneficiaries of the IRA and not have it in the trust.