Putting together a trust can be highly complicated, a process that will indeed require help from professionals to advise and ensure the trust is fully funded and clearly outlines the grantor’s wishes. While trusts can offer several advantages, they require careful consideration. It’s important to note that a trust isn’t for everyone; it can act as a critical tool when planning an estate. Constructing a trust takes precision because the professionals involved will need to carefully review the specific needs of their clients to ensure that the trust is developed and customized to meet their needs strategically. There are several elements to a trust, and ensuring that each one is incorporated is imperative to creating a trust that truly serves its’ purpose. While several assets should be incorporated within a trust, a trust lawyer families recommend from Carpenter & Lewis PLLC will share that developing a trust takes time. But, it’s possible to reap the benefits by putting forth the time and effort.
Assets to Incorporate into a Trust
A trust is an essential estate planning tool because the grantor can transfer many assets into a trust. In addition, the grantor can develop a trust that meets the grantor’s needs and allows them to outline clear instructions for how third-party beneficiaries will receive their inheritance. Key assets that should be considered when developing a trust may include:
- Insurance Policies
- Real Estate
- Stocks and Bonds
- Checking Accounts
- Savings Accounts
- Mutual Funds
Many types of trusts are available when developing a trust, but it’s essential to carefully consider each one to ensure that they meet the grantor’s needs. There are two commonly formed types of trusts: revocable and irrevocable trusts. Revocable trusts are relatively flexible and allow the grantor to retain control and make changes while they are still living. In contrast, an irrevocable trust can be more challenging to make changes to.
Ensuring that a Trust is Funded
Once a trust has been developed, it’s essential to make sure that it is properly funded. Essentially, the process of funding a trust is when the grantor transfers all of their assets into their trust, thus, transferring ownership. This will involve transferring ownership by changing the name on all accounts to that of the trust that was developed. Developing a trust can be a crucial strategy for keeping the contents of an estate private and avoiding the probate process. However, when a trust is not properly funded, there is a risk that all assets intended for the trust may have to pass through probate. It’s important to be aware that with assistance from a lawyer, the grantor can ensure that all assets have been properly transferred into the trust that was developed.
Trust accounts offer advantages for both the grantor and the third-party beneficiary. While a trust is commonly thought of as a luxurious business proposition for anyone with assets, it can be a viable consideration for managing wealth. A trust can ensure that assets are passed on to beneficiaries per the grantor’s wishes while considering the number of considerations that should be made.