Creating one or more trusts is an excellent way to safeguard your assets and ensure they can pass on to your heirs intact. However, it is not enough to create a trust. You must add your property to give your trust value.
When people begin their estate planning efforts, they usually need professional assistance deciding whether they need to include a trust. Most believe you must be wealthy to benefit from a trust. In truth, trusts can offer substantial financial advantages to people of modest means. Once you fund your trust documents, they remain safe and can grow to meet your needs.
Effective ways to fund a trust
Funding a trust involves transferring ownership of your assets over to the trust. You can also designate your trust as the beneficiary for payable assets like life insurance policies. Common examples of trust funding include:
- Transfer untitled property like jewelry or antiques to your trust by completing an Assignment of Property document
- Open up new Certificates of Deposit (CDs) in your trust’s name
- Move ownership of your real estate to the trust by completing a quitclaim deed
- For titled assets like vehicles, acquire a new title showing that your trust owns the property
- Transfer your bank accounts by opening new accounts in your trust’s name
- You can also add securities like bonds and stocks to your trusts, but you may need legal assistance
Trusts offer real value to residents of Cocoa, Florida. Examples include protection from probate and significant tax savings. These two advantages alone can save your heirs from significant hardships that might otherwise arise after your death. Knowing that your assets are secure gives you and those you love lasting peace of mind.