Creating a trust can be a great way to engage in estate planning that protects a family’s assets. It can not only provide financial security for an individual and his or her beneficiaries, but it can also provide peace of mind. In order to create a valid trust, though, an individual must be careful and adhere to the law. Failing to do so could result in unintended consequences that can threaten the financial health of the estate. Yet, even once a trust is created, additional issues may arise that require close attention.
When it comes to a living trust, one of these issues can be depositing funds and other assets into the trust. Essentially, there are two ways to do this. The first is put those assets into the trust while the creator of the trust is still alive. To do this, the individual will have to transfer title of assets to the trustee. If the asset doesn’t carry a title, then the rights to the property will need to be transferred to the trustee. This highlights why it is important to choose a trustee who is dependable.
The second way to place assets in trust is to use a pour-over will. Here, all assets that are not left to a beneficiary will be transferred into the trust.
There are many creative ways to plan for the passing of one’s estate. It’s not something that should be thrown together haphazardly. Those who want to control what happens to their assets upon death, as well as those who have questions about probate administration and challenging trusts and wills, should carefully consider whether they would benefit from legal assistance. Being well informed can help protect your rights and interests.