The property you are referencing, $Tr(\rho^2)$, is called the purity of the density matrix [1]. Purity is a measure of how "mixed" a density matrix is. If the density matrix is not mixed and represents a pure state, then the purity will be unity. Since a Bell state is a pure state you are receiving $Tr(\rho^2) = 1$.
The property I believe you wish to be using is called concurrence [2]. The concurrence gives a measure of entanglement for a quantum state; A bell state has a concurrence of unity while a separable state has concurrence zero. Concurrence utilizes the reduced density matrix as you allude to. It is defined as,
$$
\text{Concurrence} = \sqrt{2(1-\text{Tr}(\tilde{\rho}^2)}
$$
where $\tilde{\rho}$ is defined as the reduced density matrix. In a two qubit system, the reduced density matrix can be obtained by performing a partial trace over one of the qubits.
For example, suppose we construct a Bell state with two qubits, A and B.
$$
|\psi\rangle = \frac{|\uparrow\rangle_A|\downarrow\rangle_B+|\downarrow\rangle_A|\uparrow\rangle_B}{\sqrt{2}}
$$
The density matrix for the both systems, $\rho = |\psi\rangle\langle \psi|$, is related to the reduced density matrix, $\tilde{\rho}$ for qubit B, by the relation,
$$
\tilde{\rho} = \text{Tr}_A(\rho) = (\langle \uparrow |_A \otimes \text{Id}_B) \ \rho\ (|\uparrow\rangle_A \otimes \text{Id}_B)+(\langle \downarrow |_A \otimes \text{Id}_B) \ \rho\ (|\downarrow\rangle_A \otimes \text{Id}_B)
$$
where we have "traced out" system A. I apologize for the atrocious formatting. For our initial Bell state, this yields a reduced density matrix of,
$$
\tilde{\rho} = \frac{|\downarrow\rangle_B\langle\downarrow|_B+|\uparrow\rangle_B\langle\uparrow|_B}{2}
$$
It is easy to see this yields a concurrence of unity.