Up to this point, you have either actively avoided estate planning or just felt that it wasn’t necessary yet. However, now, you are ready to take on the task of preparing for events in your future that you would rather not think about, such as incapacitation and death.
As you start your estate plan, one of the questions asked is whether you are considering a revocable living trust. You may not think you could benefit from one, but if you knew what type of property you could transfer into it, you may change your mind.
Assets that could go into a revocable living trust
Someone may have told you that the property in your trust will not go through probate, which means that it will be available for your beneficiaries right away after you pass. In addition, if you should end up incapacitated due to an illness or injury, your successor trustee could simply step in and take over the management of the assets in the trust. Your question is still what types of property would even go into it, and many of them are listed below:
- Real estate, such as your home
- Personal property, such as vehicles, household goods, jewelry and more
- Mineral, oil or gas rights
- Savings, checking or money market accounts
- Certificates of deposit
- Non-retirement brokerage or investment accounts
- Non-qualified annuities
- Bonds and stocks held in certificate form
- Business interests
- Unsecured or secured loans owed to you
- Royalties from trademarks, copyrights or patents
You may even be able to transfer ownership of your life insurance policy into your trust, but you may want to check with the company and an attorney before doing so to make sure it remains protected from creditors. As you can see, nearly any type of property you own could go into your revocable living trust. You don’t have to be wealthy or famous to benefit from a trust.
One caveat does exist, however. You may have some property that should not go into the trust. You can discuss what that might be with an estate-planning attorney.
Preparing your trust
Perhaps knowing that you can fund your trust with a variety of property helps you make the determination that you want a revocable living trust as part of your estate plan. Now, you will need to decide how to structure the trust for after your death. For instance, if you make your children beneficiaries of the trust after your death, you may want to specify when and how they receive distributions from it.
Discussing your wishes for your trust with an estate-planning attorney could help you determine the best way to set up your trust in order to tailor it to your family needs and your goals.