Trust

Forum|Forum|10 days ago
August 12, 2026
6 replies
68 views

I am thinking about creating a Trust for my estate plan rather than a will, and place my real estate in the Trust. I want to keep my cash accounts and investment accounts in my name and designate beneficiaries not listed in the Trust. Do I need to file seperate returns for my personal acounts and the Trust or can I combine the two into one return? Any guidance on how to proceed?

Best answer by M-MTax

You should consult a trusts and estates attorney in your area if your assets are substantial (or even if they’re not, currently).

See https://www.avvo.com/

M-MTaxAnswer

Level 15

You should consult a trusts and estates attorney in your area if your assets are substantial (or even if they’re not, currently).

See https://www.avvo.com/

M-MTax

Level 15

You can designate beneficiaries for your financial accounts (TODs and PODs) and have a revocable trust without having to file a separate return for the trust. The revocable trust would be viewed as a disregarded entity by the IRS.

Mike9241

Level 15

as long as you control the trust, the IRS regards it as a grantor trust which means you still report the activity on your 1040. There is no requirement to get an EIN for a grantor trust, rather you use your social security number. This avoids the need to file a grantor trust return which can only be done with TurboTax Business. You would need some a 1040 version for your personal return. A trust should generally be able to avoid probate. For grantor trusts some advisors recommend getting an EIN to simplify administration and avoid complications later. When a trust obtains an EIN, that requires filing a grantor trust return for which TurboTax Business is required.

You mention keeping cash and investment accounts out of the trust. This will subject them to probate which can be costly. There is nothing preventing you from putting them in the same trust but designating who the beneficiaries are for the specific assets owned by the trust, or you could set up additional trusts for specific assets but there is really no need.

even with trust a pour -over will is advisable. A pour-over will is designed to work alongside a revocable living trust. Its primary purpose is to ensure that any assets not transferred into trust during your lifetime are "poured over" into a trust after your death. This allows those assets to be managed and distributed according to the trust’s terms rather than being subject to state intestacy laws or distributed inconsistently. Assets in a pour-over will generally must go through probate.

if you have retirement accounts these need not be covered by a trust or will, since there should be a primary and contingent beneficiary. Thus probate is avoided for them

Mike9241

M-MTax

Level 15

You mention keeping cash and investment accounts out of the trust. This will subject them to probate which can be costly.

It will NOT subject them to probate if the accounts have designated beneficiaries, such as TODs for investment accounts and PODs for bank accounts; both bypass probate.

NCperson

Level 15

suggest discussing with a estate lawyer.

no will? who gets your personal assets (car, furniture, kitchen gadgets, etc.)?