Now that you’re going through the estate planning process, you’re looking into things like your will and power of attorney. You’re also interested in opening up a trust for your beneficiaries. The only thing is, you aren’t sure how they’re funded.
Here is some more information on trusts to help you as you make crucial life decisions.
How Trusts Are Funded
You can fund your trust in a number of different ways. You’re able to fund them with personal property and assets without titles or deeds, real estate, life insurance, business interests, retirement account plans, and bank accounts.
Tips for Funding Your Trust
In terms of personal property, this can range from cars to clothing to jewelry. It’s better to be specific (i.e. say “my Aunt’s Tiffany diamond necklace” instead of “necklace”) but you can also list less specific categories, like jewelry, if you want.
When you are funding it with a bank account, get in touch with your bank and fill out the proper forms for transferring into the trust. If you have a property with a deed, then you’ll want to contact your County Recorder for assistance. When it comes to life insurance, it’s good to be in touch with your policy provider to figure out the logistics. If you are putting business interests from an LLC or partnership into the trust, then make sure your partners know and then sign an Assignment of Interest to transfer the interest to the trust. For retirement accounts, designate a beneficiary who will receive the money.
Contacting an Attorney
If you need help starting a trust and figuring out how to fund it, you can contact the estate planning attorneys at Legacy Law Group in Eastern Washington, Spokane Valley, and Spokane itself. Get in touch with us at (509) 315-8087.