Legal Question in Wills and Trusts in California

Income tax-deferred retirement accounts must stay in the name of the wage earner while s/he is living.

No. IRS would deem that as if you had cashed it in and you would be required to pay tax and early withdrawal penalties. You could name the trust as a beneficiary, but that is not necessarily the best thing to do either. If you name your children as beneficiaries, they can roll the amount over to an IRA in their name and avoid payment of taxes until they retire.