When creating an Estate Plan, preparation and execution of the documents, i.e., Last Will and Testament and Trust are very important; however, they are only part of the process. If you created a Trust as a part of your plan you also need to fund the trust. Funding your Trust is essential for the plan to work as intended. Funding your trust not only allows for more efficient distribution of your assets upon your death, it also provides for management during incapacity.
There are a variety of ways to fund your trust:
- Real Estate Transfers. One method is to transfer real estate deeds into the trust. This is usually done via a quit claim deed that is subsequently filed for recording with the Clerk of the Superior Court. This might also require the permission of the lender.
- Financial Accounts. Funding your trust also involves either retitling your checking, savings, money market accounts, and Certificates of Deposit or adding Payable on Death beneficiaries to them.
- Insurance and Retirement Accounts. As a part of funding your trust, you should also update beneficiary designations on insurance, retirement accounts and other accounts that distribute via beneficiary designation. You might name the trust as beneficiary where you wish for the asset to be distributed under the terms of the trust or you may name individuals where you wish for the individuals to be able to claim their share individually.
- Business Interests. Membership Interest or shares in a business can also be assigned to your trust or re-titled in the name of your trust.
The above methods of funding your trust are a subset of the various steps to fund a trust so that assets flow as intended at death. Properly funding your trust allows your trustee to distribute assets to beneficiaries efficiently without additional cost or delay and allows your heirs to avoid probate court.
Let Grissom Law, LLC help you create your estate plan and find the best methods of funding your trust account and ensuring that your assets are distributed according to your wishes. Call us today at 678.781.9230 to schedule an appointment.
Disclaimer
This Blog/Web Site is made available for educational purposes only as well as to give you general information and a general understanding of the law, not to provide legal advice. By using this blog site you understand that there is no attorney client relationship between you and Grissom Law, LLC.