5 Types Of Assets You Can Use To Fund Your Trust
A good trust is one of the most important components in an estate plan. But, in order for your trust to be used as the means through which your assets are distributed to your beneficiaries, you must fund it.
Going over the five types of assets you can use to fund your trust, and speaking with an estate planning lawyer directly, will allow you to develop, and then fund, an effective trust.
5 Types Of Assets You Can Use To Fund Your Trust
Asset 01: Bank Accounts
Out of all the assets that comprise a trust, bank accounts tend to be some of the most common. And, it’s pretty easy to see why this is the case: many people have bank accounts and most bank accounts have money in them.
Setting up your bank account so that it is in the name of your trust and, as such, has been used to fund your trust, is not always easy. But, working with a lawyer, and contacting your bank, will make things much easier.
Asset 02: Retirement Accounts
Many people store the bulk of their wealth in retirement accounts. But, if these retirement accounts are not a part of one’s trust and, in turn, overall estate plan, then this wealth may not go to your intended beneficiaries.
Given the tax complexities of integrating a retirement account into a trust, as well as the legal complexities of doing so, you must work with a lawyer to do so.
Asset 03: Investment Accounts
Your investment accounts are likely comprised of stocks, bonds, and equities. And, you can set up your investment accounts, so that they are part of your trust and, as such, used to fund your trust.
Every investment account is a little different. This means that setting up your investment account, so that it is part of your trust, can be a little tricky.
Working with your advisor – or someone else who manages/works with your investment accounts – and then speaking with a lawyer, should allow you to use your investment accounts to fund your trust.
Asset 04: Real Estate
You can use the real estate you own to fund your trust. This ensures that your beneficiaries will receive the real estate that you wish to give them.
In order for you to fund your trust with the real estate you own, you must transfer your ownership of each piece of real estate to the trustee of your trust. This can be a complicated process, but working with a lawyer makes it easier.
Asset 05: Your Business
If you own a business, you can give your share of the business to the trust. You can then set it up so that this share goes to your chosen beneficiary.
Some businesses cannot be given to a trust, due to legal requirements regarding, say, the need for a license, among other requirements. But, working with a lawyer will allow you to deal with these requirements.
Speak With A Florida Estate Planning Lawyer Today
You must fund your trust, in order for that trust to be effective. Speak with a Florida estate planning lawyer at the Millhorn Elder Law Planning Group today and we will help you fund your trust.
Sources:
law.cornell.edu/wex/trust
law.cornell.edu/wex/trustee
