Grandview Equity Group Tokyo Japan Reviews the Best Assets to Put in a Trust
A revocable living trust is an estate planning tool that allows you to manage your assets during your lifetime, ensure smooth transfer to your beneficiaries after death, and avoid probate. Probate is a public process, meaning information about your assets and beneficiaries may be accessible. By placing assets in a trust, you can keep details about your estate, financial holdings, and beneficiaries private.
Assets to Include in a Trust
Adequately funding a trust can save time, money, and stress for your heirs, so you must be strategic in your asset selection. By thoughtfully structuring your trust, you can protect your assets, avoid costly legal proceedings, and give your family peace of mind during difficult times.
According to Grandview Equity Group Tokyo Japan, these are the assets you should include in your trust:
Real Estate
Real estate is one of the most significant assets in a revocable trust. Transferring property into a trust helps avoid the probate process, which can be time-consuming, especially if you own properties in multiple states.
Real estate properties can include any of the following:
- Primary residence
- Vacation homes
- Rental properties
- Commercial spaces
For individuals who own property in multiple states, each property typically needs to go through probate in its respective state, a process known as “ancillary probate.” Transferring these properties into a trust allows you to avoid multiple probate proceedings, simplifying and speeding up the process for your beneficiaries.
However, if your property has a mortgage, you may need to retitle it under the trust, and some lenders may need to approve this change.
Non-Retirement Financial Accounts
Placing non-retirement financial accounts in a trust helps ensure seamless management and distribution after your death. You should retitle the accounts under the trust’s name to ensure they are correctly added.
These accounts can include:
- Brokerage and mutual fund accounts
- Non-retirement stocks and bonds
- Money market accounts
- Cash, checking, and savings accounts
- Certificates of Deposit (CDs)
Transferring CDs into a trust may involve penalties, so check with your financial institution or consult financial experts like Grandview Equity Group Tokyo Japan beforehand.
Valuable Personal Property
You can include valuable personal assets like jewelry, artwork, antiques, and collectibles in your trust. These items may not go through probate but placing them in a trust ensures they are distributed according to your wishes without delay.
Typically, you can list personal property without a formal title on a trust schedule attached to the trust document.
Business Interests
Business ownership can also be transferred to a trust, providing continuity for your heirs and potentially reducing estate taxes. This is especially helpful for sole proprietorships, partnerships, and LLCs.
However, for partnerships and LLCs, review any agreements that may restrict the transfer of ownership to a trust. Business owners should consult an attorney to ensure they meet all legal requirements.
Assets in Your Trust
Once you have established a trust, you can add, remove, or modify assets as your financial situation changes. Consult a financial firm like Grandview Equity Group Tokyo Japan or an estate planning attorney to customize your trust to your unique situation and ensure your estate plan is practical and comprehensive.
