Creating a trust is a vital step in estate planning, providing a solid foundation for the distribution and management of your assets. However, for a trust to fulfill its intended purpose, it must be properly funded. At Voorhees Law Group PC, our dedicated attorney, Kari Voorhees, understands the significance of this process and is here to guide you through it. In this blog post, we will provide a comprehensive guide on how to fund your trust effectively, ensuring that your estate plan is secure and your wishes are carried out.
Inventory and Categorize Your Assets
The first step in funding your trust is to take inventory of your assets. Compile a comprehensive list of your financial accounts, real estate properties, investments, and any other assets you wish to include in the trust. Categorize them for easier management and evaluation.
Review Your Beneficiary Designations
Certain assets, such as life insurance policies, retirement accounts, and payable-on-death (POD) bank accounts, pass directly to designated beneficiaries outside of your trust. Review and update the beneficiary designations to align them with your estate planning goals. You may choose to name the trust as the beneficiary to ensure these assets are properly integrated into your trust structure.
Transfer Real Estate and Tangible Assets
To transfer real estate into your trust, you will need to execute a deed that legally transfers ownership from yourself to the trust. Similarly, tangible assets like vehicles, artwork, or jewelry should be re-titled in the name of the trust. Consult with legal professionals to ensure the proper documentation and filing requirements are met.
Re-register Financial Accounts
For financial accounts, such as bank accounts, investment portfolios, and brokerage accounts, contact the respective institutions and request the re-registration of the accounts in the name of the trust. This step ensures that these assets are officially recognized as part of the trust and subject to its provisions.
Establish Pour-Over Wills
In situations where certain assets may not have been funded into the trust during your lifetime, pour-over wills can be utilized. These wills provide for the transfer of any remaining assets to the trust upon your passing. While it is best to fund all assets during your lifetime, pour-over wills act as a safety net to ensure assets are eventually distributed according to your trust’s instructions.
Secure Your Legacy with Proper Trust Funding
Properly funding your trust is a crucial component of successful estate planning. By following these steps and working with an experienced attorney like Kari Voorhees at Voorhees Law Group PC, you can ensure that your assets are integrated into your trust, protecting your legacy and ensuring the seamless execution of your estate plan.
If you require assistance with trust funding or any other estate planning matters, we invite you to schedule a free consultation with Kari Voorhees. Visit our website today to learn more about the importance of trust funding and to book your complimentary appointment.
Take control of your estate plan by properly funding your trust. Schedule your free consultation with Kari Voorhees now by visiting our website at www.voorheeslawgroup.com or calling (909) 334-1425.