If you want to use a trust to pass on assets to a loved one, creating one is just the first step. You also have to fund your trust and actually put assets in it. It’s a good idea to know what kinds of assets trusts can be used to store and a Des Moines, Iowa estate planning lawyer who can answer any questions that you may have.
What Assets Can Be Put in a Trust?
All kinds of assets can be used to fund a trust. You can pass on things like:
- Real estate
- Vehicles like cars, motorcycles, RVs, and airplanes
- Checking, savings, and money market accounts
- Payouts from life insurance policies
- Business interests
- Gas, oil, and mineral rights
- Intellectual property like copyrights, trademarks, and patents
- Personal property without a title, like artwork, collectibles, or anything else of value
If there is a particular asset that you want to leave behind for your loved ones in a trust, your lawyer will help you do it.
What Can I Do to Fund My Trust?
How you fund your trust can depend on what kinds of assets you want to place inside of it. Different types of assets require different paperwork and processes. You can:
- Change the title of a vehicle so that the trust is the owner
- Use a quit claim deed to transfer real estate into the trust
- Reopen bank accounts in the name of the trust
- Use an assignment of ownership document to fund the trust with personal property that lacks a deed or title
If you have questions about how to fund your trust with a particular asset, we’re here to answer them.
Can I Fund a Trust After I Pass Away?
You can. This means making your trust a beneficiary. Just as you would make plans to leave certain assets to a spouse, a child, or another loved one, you can leave your assets for a trust. This can be a good way to pass on assets from retirement accounts, like IRAs or 401(k)s. You can also fund a trust with money from your medical savings account or health savings account when you pass away.
Should I Make My Trust Revocable or Irrevocable?
This is largely up to you. Revocable trusts allow you to change the rules and terms of a trust when necessary, You also stay in complete control of it and the assets you have placed inside.
An irrevocable trust cannot have its rules changed later. Some people don’t like the lack of control given to a grantor, but such an arrangement can have other benefits, like protection from creditors, that a lawyer would be happy to tell you about. A revocable trust becomes irrevocable once the grantor dies.
Talk to an Estate Planning Lawyer
So if you are thinking about setting up a trust or multiple trusts, don’t do it on your own. Contact Herting Law, PLLC to schedule a consultation and learn more about what our knowledgeable estate planning lawyers can do for you.
