What To Put In A Trust

What should you put in a trust? Most individuals make sure to include financial accounts, real estate, life insurance policies, collectible vehicles, and more.

Table of Contents

What Can You Put In A Trust?

Most individuals assume that once they sign their trust documents at their attorney’s office, they are good to go. Setting up the trust is merely half the process. Make sure to include the following assets in your trust.

Financial Accounts

The several types of financial assets that can be owned by a trust include the following:

Nonretirement brokerage and mutual fund accounts.
Bonds and stock certificates.
Money market accounts, cash, checking, and savings accounts.
Safe-deposit boxes.
Certificates of deposit (CDs).
Annuities.
Shareholders stock from closely held corporations.

Real Estate

Many individuals wonder whether or not it is a good idea to put their house in a trust. Considering the fact that your home is potentially one of your larger assets, living trusts can be quite beneficial since they can transfer real estate quickly.

They also help avoid the hassle of separate probate proceedings for land, homes, and commercial properties that are owned either in different countries or out of state. A property with a mortgage, however, requires retitling into the name of the trust, and it is possible that some lenders may be reluctant to do this.

Life Insurance

Putting life insurance in a trust can protect it from creditors while also making it easier for loved ones to access it. Naming the living trust as a beneficiary of your life insurance policy can come with a few risks, though.

If, for instance, you are the trustee of your revocable living trust, all assets in the trust will be considered your property. In this event, life insurance proceeds will be counted as part of your estate’s worth which could create a taxable situation if you reach the IRS threshold for taxable estates.

Collectible Vehicles

Some cars retain their cash value for long periods of time so it may be worth transferring to a revocable trust. It is worth considering the title transfers and taxes that could be imposed. Always speak to a financial advisor or experienced attorney before transferring these assets.

Other Valued Personal Property

Personal items like valued jewelry or art may be placed in a trust. Any personal property without any legal certificate or title is commonly listed on an accompanying schedule kept with the other trust documents.

Source:

1. “What Assets Should You Put (Or Not Put) In Your Trust?” The Wealth Advisor https://www.thewealthadvisor.com/article/what-assets-should-you-put-or-not-put-your-trust

Speak With Our Estate Planning Attorneys In Phoenix, Arizona Today

Estate planning is the right thing to do for the people you love. It’s another way to say “thank you” to those who love you. Some of the decisions are hard, but at Ogborne Law, we will help you navigate these difficult decisions.

Your Arizona estate planning attorney can help you select a will or trust or both. Your estate solution will work for you. You will have the peace of mind that comes with effective planning for the future. Call 602.343.1435 or contact Ogborne Law with questions.