Establishing a trust is an important part of setting up and managing your estate. A trust allows you to place conditions on the distribution of your assets upon your demise and to provide for management during incapacity. It also allows you to distribute assets to heirs efficiently without cost or delay, and allow your heirs to avoid the cost and complexity of probate court; however, it requires that the trust be funded with your assets prior to your demise.
There are a variety of ways to fund your trust estate. One method is to transfer real estate deeds into a trust account. This is usually done via a quit claim deed. This method may also require filing a copy of the trust document as required by law, and might also require the permission of the lender. You can also fund your trust account with checking, savings, money market accounts, and Certificates of Deposit.
A trust account can be funded by transferring the titles of personal property, such as vehicles, motorcycles, boats, and aircraft, although in many instances the transfer of personal property can be accomplished through other means. You’ll be required to obtain a new title for these properties showing the trust as the owner. Additionally, any property subject to a lien requires the approval of the lender before it can be transferred to your trust account.
Ownership or shares in a business can also be used to fund your trust account. Partnerships, LLCs, and shares in a corporation can be re-titled in the name of your trust. Your trust account can also serve as the beneficiary of your life insurance policy. This has the added benefit of letting the trust act as manager of your policy should you become incapacitated and unable to manage your policy on your own. You can also establish your trust as the recipient of payments on outstanding loans you may have made, including personal loans and mortgages.
Let the experienced trust and estate attorneys at Grissom Law, LLC help you find the best methods of funding your trust account and ensuring that your assets are distributed according to your wishes. Call us today.
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