What to Put in a Trust
As you build assets, it is important that you make sure that you manage them responsibly. An excellent way to protect many forms of property is by putting them into a trust.
What is a trust?
A trust is a legal arrangement that allows a third party, known as the trustee, to control and direct assets on behalf of beneficiaries. A person would open a trust to ensure that ownership of their property is transferred to the proper recipients. It is an excellent way to both protect your property and help your loved ones to avoid a long probate process after you pass away. A trust is an important part of your estate plan.
What can I put in a trust?
There are many items that can be put into a trust. What you decide to put in a trust is entirely at your discretion, but there are several things that one should consider including.
1. Material Personal Property
Material personal property can mean furniture, appliances, artwork, books, collectibles, jewelry, personal papers, even clothing.
2. Cash Accounts
This can include money market, checking, and savings accounts. In some instances, it can also include CDs, but whether or not it does depends upon the bank’s policies regarding transfer of ownership.
3. Investment Accounts
This can include stocks and bonds, non-retirement investment and brokerage accounts, business holdings, non-qualified annuities, and natural resource rights.
4. Real Estate
This can include residential or commercial real estate, and it entails recording a new deed in the name of the trust. An existing mortgage or other lien on the property should not be an issue as it will simply follow the transfer.
Now that you know what you can put in a trust, why not set one up and start protecting your assets today? Contact us at SKB Attorneys and our estate planning attorney will help you with getting your property secured.
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