July 12, 2023

If you have created a living trust, you’ve taken a crucial step in protecting assets and providing for your loved ones when you’re gone. However, for the trust to work how you want it to, you must be smart about which assets you transfer into it. If you want to know what assets to transfer into a trust, read below for a few tips and consult your Millman Law Group attorney for specific guidance related to your personal preferences. 

Bank Accounts

There are many different types of bank accounts you can transfer into a trust, including: 

• Checking accounts
• Savings accounts
• Certificates of deposit (CDs)
• Money market accounts
• Safe deposit boxes
• Non-retirement investment accounts, such as brokerage or mutual fund accounts 

Transferring financial accounts into your trust lets you choose how these assets are distributed to beneficiaries. It can also make it much easier for beneficiaries to access these funds. 

Real Estate Property 

If you own real estate, these are assets you can transfer into a trust. Doing so may be helpful if you own property in a different state. By including those assets in a trust, your in-state assets avoid probate, and your out-of-state property can avoid ancillary probate. 

Insurance Policies

Your life insurance policy is a vital part of your estate plan, and the death benefits can help your loved ones and provide them with financial support after you’re gone. There are two ways to include your insurance policy in a trust: 

• Name your trust as the beneficiary of your life insurance policy: When you pass away, the proceeds of your policy go to your trust. In your trust documents, you can explain who should receive these proceeds. 
• Transfer ownership of the policy to your trust: By setting up an irrevocable life insurance trust (ILIT), you can create specific rules around who receives the payout from your life insurance policy and when they receive it. 

Stocks, Bonds, and Investment Assets

You can also transfer your investment assets into a living trust, such as stocks, bonds, and mutual funds. To do so, you must reissue the certificates for these assets in the trustee’s name or complete a transfer document. 

Tangible Personal Property 

You can transfer your personal property, like furniture or family heirlooms, into a living trust. This can be done in two ways: 

• Create a pour-over will: These transfer assets into your trust after you die. They are often created alongside a revocable living trust. However, assets that “pour over” to your trust from your will must still go through probate. 
• Assign personal property to your trust: If you want assets to avoid probate, you can “assign” them to your trust during your lifetime. This can be done with an “assignment of property to revocable trust” document, which includes the tangible property you list. 

Consult with your estate planning attorney to make sure you have everything you need to transfer property and assets successfully into your new trust. 

Estate Planning Made Easy With Millman Law Group

Millman Law Group, PLLC is rare because it’s one of the only law firms that offer life planning in South Florida. From life care planning to the preparation of detailed estate plans, Millman Law Group has committed to serving Floridian elderly communities in Boca Raton, Palm Beach County, Ocean Ridge, Hillsboro Beach, and many other areas since 2018. Our dedicated team also specializes in special needs Trusts and catering to any age demographic because we know for certain it’s never too early to start preparing you and your family for your future. For the latest news in estate planning and elder care law, follow us on Facebook, Twitter, Linked In, and Pinterest. You can also contact us at 561-463-6480.