When you are exploring your estate planning options, you may be interested in creating a Living Trust to house your assets in addition to other options like a Will. However, many are unaware of the steps involved to fund a Living Trust. As such, it’s important to familiarize yourself with the steps involved in this process to ensure you take the steps necessary to protect your assets and loved ones. The following blog explores what you should know about this process and why it’s imperative to connect with an experienced Medina County, Ohio Trust preparation lawyer who can assist with any complications you may have during these times.
How Does a Living Trust Work?
A Living Trust is a form of Trust Fund that is created during a person’s lifetime with the intent to hold assets until after their passing. Essentially, this allows the creator to create terms and conditions for how the assets held in the Trust will be distributed upon their passing, like a Will.
However, the biggest difference is that a Trust takes effect immediately upon its creation, whereas a Will only takes effect upon the creator’s passing. This allows the Trustee, often the creator of the Trust, to manage the assets held in the trust throughout their lifetime.
Another difference between a Trust Fund and a Will is that a Will must go through the Probate process when the creator passes away. This is a complex process in which the courts oversee the distribution of assets according to the Will while ensuring any debts are repaid to creditors. As such, many opt to create Trust Funds, as this transfer of assets is immediate upon the death of the creator.
How Can I Fund a Living Trust?
Unlike creating a Will in which you will simply list your assets and explain how you would like them distributed upon your passing, you must transfer assets to a Trust Fund first. This can be an involved process, so it’s in your best interest to connect with an experienced attorney who can guide you through these matters.
In most instances, you’ll need to transfer the titles of property to the Trustee of your Trust Fund. For example, if you want your bank account to be held in the Trust Fund, you would need to contact your bank for the proper forms. This will generally include a Certificate of Trust, which you will complete and return to the financial institution. Additionally, the bank will change the title of the account to the name of your Trustee on behalf of your Trust Fund. This is the case for all properties with titles. For items without a title, like personal property, you can complete a general transfer form that should remain with your Trust records.
As you can see, this process can be complex, and taking the time to retitle all assets can be overwhelming. If you’re interested in creating a Trust Fund but aren’t sure where to start, connecting with an experienced estate planning attorney from Krause Law is in your best interest. Our dedicated team understands how overwhelming these matters can be, which is why our firm is committed to fighting for you. Contact us today to learn more.