Funding your Living Trust is the process of transferring your assets from you to your trust. To do this, you physically change the titles of your assets from your individual name to the name of your trust. You may also change beneficiary designations to your trust.
The general idea is that all of your assets should be in your Living Trust. However, there are a few assets that cannot, or should not, be put into your trust:
Assets You Probably Want in Your Living Trust
- Real property (home, land, other real estate)
- Bank/credit union accounts, safe deposit boxes
- Investments (CDs, stocks, mutual funds, etc.)
- Notes payable (money owed to you)
- Life insurance (or use irrevocable trust)
- Business interests, intellectual property
- Oil and gas interests, foreign assets
- Personal untitled property
Assets You Probably Do Not Want in Your Living Trust
- IRAs and other tax-deferred retirement accounts
- Incentive stock options and Section 1244 stock
- Interests in professional corporations
If you have questions about Living Trusts, please contact my office.