Assets I Should Consider Putting Into A Trust?

Posted by smith clea on August 8th, 2022

It’s difficult to decide what assets to include in your trust.

With numerous things you’ve amassed over the years, it’s hard to know what to keep out of it and what to put in it.

Here are some examples of items you should consider including in your trust.

Do I Need A Living Trust?

If you have assets and want to make sure they go to the people or causes you care about after you die, you need a living trust.

A living trust is a legal document that allows you to control how your assets are distributed after you die.

You can put all of your assets into the trust, or just some of them.

The most common assets people put into trusts are homes, investment property, and life insurance policies.

What Would Be In My Living Trust?

If you have a living trust, you may be wondering what kind of assets you should put into it. Here are a few things to consider:

  • Your home: If you own a home, it can be placed in your living trust. This can help avoid probate and make things easier for your heirs.
  • Other real estate: If you own other property, such as rental property or vacant land, you may also want to place it in your trust.

The Right Way To Draft A Revocable Living Trust

A revocable living trust is a powerful tool that can help you manage your assets and protect your loved ones.

But drafting a trust is not a simple process.

Here are five things you should consider when drafting a revocable living trust:

  1. How much control do you want to maintain over the property?
  2. Do you want to protect yourself from creditors?
  3. Do you want to specify certain heirs?
  4. What will happen if one of the beneficiaries dies before the other(s)?
  5. What will happen if all of the beneficiaries die before the settlor?

Why Do I Need An Executor?

If you die without a will or trust, your assets will be distributed according to your state's intestacy laws.

An executor is a person you appoint in your will to carry out your wishes and settle your estate.

They're responsible for dividing up all your property and possessions, paying off any outstanding debts owed by the deceased, collecting any final income tax returns, and filing them with the IRS.

You should also designate an alternate executor in case something happens to your first choice before he or she has a chance to finish their duties.

What Happens If My Spouse Dies First?

If your spouse dies first and you have not set up a trust, your assets will go through probate.

This can be a lengthy and expensive process.

If you have a trust, your assets will be distributed according to the terms of the trust.

This can help avoid probate and ensure that your assets are distributed the way you want them to be.

When Is The Right Time To Do This?

You might want to consider putting your assets into a trust if you want to protect them from creditors or lawsuits, minimize estate taxes, or keep your affairs private.

The right time to do this depends on your circumstances.

You should speak with an attorney to find out if setting up a trust is right for you.

About The Author

Clea Smith is a USA-based author on Legal issues related to estate planning, will & trust, business law, and elder law. Clea Smith does her best writing on these topics that help users to find the best solutions to their FAQ on estate planning attorney, probate, living trust vs will, and more about legal family issues.

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smith clea
Joined: February 6th, 2020
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