Skip to main content

You are here

Living Trust as Beneficiary

Q: Do you think it is appropriate to name a living trust as beneficiary of a 403(b) account? The attorney told my client he is doing that to escape probate on the 403(b) distributions.

A: Keeping in mind that 403(b) assets are paid directly to named beneficiaries WITHOUT BEING SUBJECT TO PROBATE, I believe the attorney is mistaken in naming the living trust to escape probate. Your client should have a discussion with the attorney regarding his recommendation.