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August 19, 2022 // What Can I Not Place in a Trust:

Estate planning and what to place in a trust 


Are you planning to create a trust? Do you want to know which assets you can place in it and what you need to avoid? A trust can protect the interests of your beneficiaries after your death and reduce legal complexities related to property distribution. However, you cannot place all your assets in a trust. You can visit an expert in estate planning in Calgary to make the process beneficial for you and your family. An experienced professional can protect your interests in the best possible way. 


However, here are a few assets you cannot place in a trust that you should be aware of before you plan your estate.


Health Saving Accounts


Health savings or Medical Savings Accounts are tax-free and work as trusts. Hence, you cannot place them in your trust. However, you might put a few of them into your trust but with tax implications. Hence, it is better to avoid placing HSAs and MSAs in a trust.


Retirement Accounts


You should not put your retirement account into trust since it might defeat the purpose. Once you place any retirement account, including IRA, 401(k), or 403(b), they will consider it a withdrawal. As a result, you might need to pay income tax on the entire amount. Hence, you can avoid placing these accounts in your trust. You can talk to an estate planning Calgary to know more about the implications and ways to make it beneficial for your beneficiaries.


Uniform Gifts or Uniform Transfers to Minors Accounts


UGMAs or UTMAs serve the interest of minor children, and these accounts will have a custodian name to manage the finances until the child reaches a specific age. Since it is for the child, not for you, you cannot place it in your trust.


Life Insurance


The life insurance policies will have a beneficiary and will not go through probate. Hence, there is no need to place them in your trust. However, you can put some life insurance policies into your trust to maximize benefits. An expert can help you in this regard. Always consult an experienced professional in estate planning Calgary to avoid any confusion and get more benefits for your beneficiaries.


Some Bank Accounts


Before placing any bank account in a trust, you can check with your bank. There might be some requirements for placing it in a trust. You might need to open a new account and change the terms. Hence, it is better to know about the requirements before going ahead.

Investment Assets


Some investment assets, including art objects, gold bullion, or silver coins, might not be easy to handle when it comes to trusts. You might not have documents to prove the ownership of your assets, and it will cause complexities. In brief, you cannot place all those assets not registered with your name. You have to prove the ownership if you want to put anything into your trust. More importantly, you will have to understand the tax implications.




Navigating complex financial issues might not be easy for your family after death. However, you can make it stress-free for them by taking the help of experts. Once you have a clear idea about legal aspects, you can protect your family from tedious paperwork and lengthy and expensive legal processes.


For the best financial planning advice in Calgary, visit PlayCheques Financial Planning. As dedicated financial professionals, we are committed to helping our community of Calgary with financial planning and wealth management. PlayCheques’ team of professionals are also experts in estate planning, retirement planning, and financial planning for doctors. Using a unique behaviour approach to serve our clients in Calgary, Playcheques assists each and everyone with the utmost understanding and integrity. We aim to safeguard your financial future with direct solutions that will prove beneficial.