A trust is a deal in which one or more people manage or take care of property for someone else’s benefit. It is created during your lifetime and in the case of a living trust, it is something that is a part of Estate Planning Law. This means that while you are still alive, you transfer title to your property from your name to that of the trustee of the living trust. Now, you can be that trustee initially. That’s not a problem. But legal title does change. You can use the trust to hoard your property under one document, so that the assets is distributed smoothly after your death. A living trust basically helps peoples to maintain efficient control over their assets and their wishes carried after they die. A living trust can help save the expense and delay of probate, which can last as long as three years and take up to 10-to-15% of an individual’s estate’s value. As you don’t need to register a trust with the courts, setting one up can also provide you with more privacy than a will. You sign the agreement and it becomes an enforceable document. Your living trust can be revocable or irrevocable.A revocable trust can be revoked or amended by you when needed at anytime when you needed. This type is fairly flexible in its structure. If you’re searching for an estate (an extensive area of land in the country, usually with a large house, owned by one person, family, or organization.) planning vehicle which offers privacy advantages control over assets and privacy advantages then a revocable trust is a good place from where you can start. Benefits of a Living TrustYou don’t want a judge for deciding who will get your assets when you’re gone. A living trust will give you the right to distribute your assets, according to your own will. What are the best assets to place in a trust?If your goal is to transfer assets into an irrevocable trust in order to reduce your taxable estate, certain assets can be used to leverage your gift tax annual exclusion. In other words, if you place highly appreciating assets in trust, you will not only transfer the initial amount, but all future growth (income and appreciation as well). Thus, some assets are “better” than others when it comes to excluding the asset from your estate and maximizing the amount that will pass tax-free to beneficiaries. For instance, if you place a certificate of deposit in trust, it may grow at a rate of 3% per year. Non qualified annuityNon qualified annuity is funded with after-tax dollars, meaning you have already paid taxes on the money before it goes into the annuity .These can be re-titled into the name of your Revocable Living Trust, and your trust can also be designated as the primary or secondary beneficiary of the annuity. Personal PropertyThis includes personal effects (jewelry, clothing, books, personal papers, personal computers); household goods (furniture and furnishings, antiques, collectibles, artwork); motor vehicles (cars, trucks, boats, scooters, airplanes); firearms; pets, horses and cattle; tools; and photos and the like. Note that in some states a motor vehicle titled in an individual’s name can be transferred without probate. Value able items and collectionsSome people are in habit of collecting the valuable things such as precious metals, work of arts, stamp, furniture, antiques and coins. It may be anything that is transferred into the trust to avoid the probate and disbursed to the rightful beneficiary Bank accountThe bank account can also be put into the trust. You have to make sure about the paperwork that is needed to show that your account is owned by the trust. If you don’t want to use a trust to avoid probate then you may be able to add payable on the death beneficiary. Life Insurance PolicyWhy would you want to change the owner of your life insurance policy to the Trustee of your Revocable Living Trust? Because if you become mentally incapacitated, then your Disability Trustee will have the legal authority to deal with policy, including borrowing against the cash value of the policy to pay for your care. Real estateIf you’re like most people, the most valuable thing you own is real estate: your house, condominium, or land. Many people create a living trust just to make sure a house doesn’t go through probate. You can probably save your family substantial probate costs by transferring your real estate through a living trust. CashThere’s no way to transfer actual cash to a living trust. You can, however, transfer ownership of a cash account—savings account, money market account, or certificate of deposit, for example—to your living trust. You can then name a beneficiary to receive the contents of the account. So if you want to leave $5,000 to Cousin Fred, all you have to do is put the money in a bank account, transfer it to yourself as trustee, and name Fred in the trust document as the beneficiary. Property of little valueThis property may not need to go through probate or may be subject to a streamlined process. Living Trust Attorney Free ConsultationWhen you need legal help with a living trust, please call Ascent Law for your free consultation (801) 676-5506. We want to help you.
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506 via Michael Anderson https://www.ascentlawfirm.com/what-property-can-go-into-a-living-trust/
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Probate LawyerProbate Lawyer in West Jordan Utah. If you need probate lawyer, trust attorney, inheritance counsel, living trust, last will and testament, call 801-676-5506 now for a free consultation. Archives
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