Now that you have established a trust, you should transfer all applicable assets into that trust. Doing so will not only ensure your trust is funded, but all of your assets will now be protected by that trust and can hopefully avoid probate court. The process of formally transferring assets into a trust is not complicated, but it should still be done with the assistance of your estate planning attorney to ensure all applicable assets have been properly transferred. Not moving assets over correctly could mean that your trust has no positive effect (or any effect for that matter) on your assets. Instead, assets would be passed through your will and without a will, forced to pass through your state’s intestate succession laws.
Unfortunately, it is all too common for individuals to skip the funding portion of setting up their trust or leave out valuable assets that should be placed into the trust. To ensure your loved ones and assets are fully protected, make sure funding is the first step you take after the trust documents are completed.
Assets with a title document that verifies you own that asset can be transferred into the trust. You will need a new title document that shows the asset is now held by the trust. Some assets that are titled include:
- Real estate properties
- Bank accounts
- Retirement accounts
- Life insurance policies
- Investment accounts, such as CDs
- Patents, trademarks and copyrights
For example, if you wish to transfer your home into the trust, you need to prepare and record a new deed that certifies the property is held by the trust instead of yourself. To transfer bank accounts, contact your financial institution and request the ownership be transferred to your trust. The institution typically requires copies of the trust documents, but they handle all transfers after they have evidence a trust exists.
What About Assets without a Title?
There are numerous valuable assets that may not have a titled document. For example, you may have expensive artwork or family heirlooms of significant value that you wish to transfer into the security of your trust. These items can be listed in the trust document so that they are protected by the trust. For a more secure asset transfer, your attorney can draft an Assignment of Property.
Speak with Attorney Andrew M. Lamkin, P.C. Today
If you want to protect your assets, including non-titled assets, contact the Law Office of Andrew M. Lamkin, P.C. today. We can explore your options and not only help you establish a trust, but transfer your valuable assets into that trust so that they do not have to endure the hassles of probate court. It is important that your assets are transferred properly; otherwise, your assets could experience more problems – such as a retirement account that requires a full distribution and tax penalties. To get started with a properly funded trust, schedule a free consultation online or call 516-605-0625.