Creating an estate plan is something that everyone should consider, regardless of age or net worth. Unfortunately, these two factors are often the reason that many underestimate the value of creating a trust fund. However, if you’ve explored your options and decided that creating one is in your best interest, the next step is to fund the living trust. If you’re unsure how to do so or what you can hold within the trust, you’ll want to keep reading. Additionally, you’ll learn how a Pasco County, FL wills & trusts lawyer can assist you through this process.
What Is a Living Trust?
A living trust is a kind of trust fund that allows you to transfer assets and property during your lifetime for distribution upon your passing. Generally, this requires transferring property out of your ownership and to the ownership of the trust.
When you create a living trust, you must name a trustee. Generally, this is the person who creates the trust. However, you’ll need to name a successor trustee who will assume responsibility for the trust fund and manage the assets upon your death.
One of the benefits of creating a trust is the protection it provides assets. When assets and property are held within a trust fund, they are technically no longer yours. As such, if you are sued, the assets held in the trust fund would be protected. Additionally, when you pass away, your estate will have to go through the probate process. This is a complex and arduous process in which the courts must validate your estate and oversee the distribution of assets. However, assets held within a trust fund do not have to go through probate, making this an ideal option for many.
What Do I Have to Do to Fund a Living Trust?
When you fund a living trust, the first thing you must do is obtain the necessary documents to properly title the assets in your trust fund. For example, if you want to transfer a bank account, the first thing you must do is contact the bank to obtain the necessary documents. You must then re-title the account to be held by your trustee on behalf of the living trust fund.
The additional property you may need to retitle includes real estate, life insurance policies, stocks, investments and personal property. For assets without a title, like jewelry or furniture, you can complete a general transfer document.
Funding a living trust can be a confusing process for many. As such, it is in your best interest to connect with an experienced personal injury attorney who can help guide you through these complex times to ensure your assets are protected. When you’re ready to plan for the future, the team at the Law Offices of Matthew J. Jowanna, P.A. can help. Connect with us today to learn how we can help you achieve peace of mind for the future.