Living trusts allow people to enjoy their assets while you’re alive but still plan for what happens to them after you pass away. When you’re setting up your estate plan, one of the first choices you’ll make is whether to have a will-based plan or a trust-based plan. If you decide on a trust-based plan, once the documents are drafted and signed, the next step is funding it, which means deciding which of your assets will go into the trust. There are a few different ways this occurs based on the type of asset being passed. When you create a trust with Mathews Law, we will explain each step.
Real Estate
For property that requires a deed, such as your home, you will need to create a new deed that puts ownership of the property into the trust’s name. Mathews Law can handle this for you including filing the deed with the County (for clients in Maryland or Virginia).
Personal Property
Mathews Law will help you execute an assignment of personal property to ensure that your trustee has authority to distribute your personal property according to your wishes. Both Maryland and Virginia allow you to provide instructions in a separate writing that is kept with your estate planning documents which instruct the trustee how to distribute your personal property.
Business Interests
For Partnerships and LLCs, interests can be transferred by signing an Assignment of interest or by updating your Operation Agreement. Shares of stock can similarly be easily transferred by retitling the interest in the name of the trust.
Life Insurance
A trust can be named the beneficiary of a life insurance policy. This ensures that the beneficiaries receive the funds as outlined in the trust document.
Retirement Accounts
Retirement accounts such as a 401k cannot be retitled in the trust’s name. Instead, retirement accounts, medical savings accounts (MSAs), and health savings accounts (HSAs) should be passed into the trust by naming the trust as a beneficiary.
Bank Accounts
Assets in bank accounts can be transferred to the trust by either retitling the account (such that you as trustee own the account instead of you as the individual) or, if the bank allows, the trust can be named as the beneficiary on the account.
Mathews Law is here for you in creating and funding your trust. During our signing ceremony, when we execute your estate plan, we will review each account with you and create a comprehensive funding strategy.
When you’re ready, we’re ready. Schedule a time to chat to get started.
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