When it comes to estate planning, many people prepare a will to make sure their assets are distributed in the manner they wish. However, wills can not only be disputed, but also must go through probate. For those wishing to avoid probate and other potential difficulties, setting up a trust is a viable option. But to fund a trust, there are certain details to keep in mind.
Obtaining Legal Title
To properly fund a trust, you must have the trust obtain legal title to your property. Simply put, this means you need to re-title assets you wish included in the trust into the trust’s name. However, since doing so with various assets may be complex and confusing, it is best to consult with Brea CA estate planning lawyers at the Fridley Law Firm.
What Assets Can be Placed into the Trust?
To fund a trust, this of course means you must have assets that can be placed in the trust. While many people believe trusts are only for the wealthy, that is not true. In fact, many people of modest incomes create and fund trusts. As for assets that can be used to fund a trust, these can include:
–Life Insurance policies
Though many people choose to re-title these and other assets themselves, it is important they be done so correctly. Therefore, always consult Brea CA estate planning lawyers if you have any questions.
Beware of Joint Tenancy
If any assets you wish to place in a trust are held in joint tenancy, consult an attorney. If any property with joint tenancy is accidentally placed in a trust, it could possibly void the trust and lead to unforeseen tax difficulties.
If you want to fund a trust but still have questions, schedule a consultation with the Fridley Law Firm as soon as possible.