How to Title Assets in a Trust: Retitling vs. Naming a Trust as Beneficiary

Creating a trust is an important step in planning for the future, but one that often raises a key question: how should your assets be connected to the trust? In most cases, you’ll either retitle the asset in the name of the trust or name the trust as a beneficiary. Each option serves a different purpose—and getting it right is essential to ensuring your trust works the way it’s intended.

At Harper Law in Milford, CT, we help clients think through these decisions based on their goals, the types of assets they own, and how they want those assets to be managed during their life and after their death.

Retitling Assets in the Name of the Trust

When to Consider Retitling

Retitling makes sense when you want the trust to manage or control an asset during your lifetime or in the event of incapacity. This is especially common with:

• Real estate

• Bank accounts

• Brokerage accounts

• Personal property

How Retitling Works

The title is updated to name your trust as the owner. For example:
“[Your Name], Trustee of the [Name of Trust], dated [Trust Creation Date].”

Benefits of Retitling

• Avoids Probate: Assets already titled in the trust are not subject to probate.

• Continuity of Management: If you become incapacitated, your trustee can manage the asset without court intervention.

• Immediate Control: The trust terms apply right away for these assets.

Potential Drawbacks

• Administrative Burden: Updating titles with financial institutions or on deeds can take time.

• Tax Considerations: Retitling certain assets, like IRAs or other retirement accounts, can lead to tax penalties or disqualification of tax-deferred treatment.

Naming the Trust as a Beneficiary

When to Consider This Option

Some assets are better left outside the trust during your lifetime but should flow into the trust upon your death. Common examples include:

• Retirement accounts (IRAs, 401(k)s)

• Life insurance policies

• Annuities

• Payable-on-death (POD) accounts

How to Name a Trust as Beneficiary

You’ll update the beneficiary designation forms directly with the account holder or institution. For example:
“The [Name of Trust], dated [Trust Creation Date]”

Benefits of Naming the Trust

• Simplifies Lifetime Management: The asset remains in your name while you're alive.

• Avoids Probate: On death, the asset transfers to the trust smoothly.

• Minimizes Tax Risk: Especially useful for retirement accounts, since retitling them can trigger taxes, while naming a trust as beneficiary avoids that risk—if the trust meets IRS guidelines.

Potential Drawbacks

• Incapacity Limitations: The trust doesn’t control the asset while you’re alive, which may cause issues if you become incapacitated.

• Compliance with IRS Rules: For retirement assets, the trust must meet “see-through trust” criteria to maintain tax advantages for beneficiaries.

Which Option Is Right for You?

Choosing between retitling and naming the trust as beneficiary depends on the type of asset and how you want it managed.

Retitle the Asset if:

• It’s a non-retirement asset like real estate or a bank account

• You want the trust to manage the asset immediately or in case of incapacity

• You want to avoid probate and simplify future administration

Name the Trust as Beneficiary if:

• The asset is a retirement account or life insurance policy

• Retitling would create tax consequences

• You prefer to manage the asset directly during your lifetime, but want it to pass into the trust upon death

Next Steps: Review, Organize, and Plan

To ensure your trust is properly funded and functions as intended:

• Review each asset to determine whether retitling or a beneficiary designation is the better fit.

• Check your trust language to confirm it meets legal requirements—especially for retirement accounts.

• Maintain an up-to-date asset inventory showing which assets are held in the trust and which list the trust as a beneficiary.

Work With a Law Firm That Understands the Details

At Harper Law, we help clients make informed, practical decisions about how to fund their trusts and protect their estates. Whether you're just starting your estate plan or updating an existing one, we’re here to ensure your documents work as intended—now and in the future.

Contact us today to schedule a consultation and take the next step in safeguarding your legacy.

Disclaimer: This blog is for informational purposes only and does not constitute legal advice. Please consult an attorney for specific legal guidance.