Certain assets are typically not recommended for placement in a living trust due to legal and financial considerations. Retirement accounts like 401(k), IRA, 403(b), and certain qualified annuities should not be transferred directly into a living trust because doing so may trigger immediate income tax obligations. However, these assets can have the living trust designated as a beneficiary to facilitate a smooth transfer upon the individual's passing. Similarly, health savings accounts or medical savings accounts cannot be transferred to a living trust but can have the trust designated as a primary or secondary beneficiary.