While many assume that creating a Will is the only legal document they’ll need for their estate plan, this is far from the truth. In reality, there are a number of important estate planning documents you can utilize to help protect your assets and Beneficiaries. One option you may want to consider is establishing a Trust Fund. However, it’s not enough to simply create the Trust; you’ll need to ensure you fund it! If you’re unsure how to transfer your assets to a Trust, you’ll want to keep reading. The following blog explores what you should know about these circumstances and how a Medina County, Ohio Trust preparation lawyer can help you navigate these complex matters.
How Does a Trust Fund Work?
A Trust Fund is a tool used to hold assets for a Beneficiary while providing a number of important protections. You’ll find that there are several different kinds of Trusts you can establish based on your unique needs.
When you create a Trust Fund, you are relinquishing ownership of the assets by making the Trust the legal owner. As such, you’ll find that one of the main benefits of Trust is that it can help you avoid Probate, which is the process of validating your Will upon your passing. Instead, the assets held in a Trust can be distributed directly to your Beneficiaries upon your passing.
Additionally, you’ll find that creating a Trust offers you greater control over when and how your Beneficiaries receive their inheritances. For example, if you leave your grandchild’s assets in a Will, they may not be mature enough to responsibly manage their inheritance upon your passing. By placing those assets in a Trust Fund, you can include terms for when they can receive the assets, such as turning 25 or graduating from college.
How Can I Fund a Trust Once I’ve Created It?
After you establish your Trust Fund, you’ll need to move assets to the Trust. Typically, you’ll find that adding assets to the Trust is often done through one of two methods. The first option is to re-title assets held in your name to that of the Trust. For example, if you want your bank account to be an asset held in the Fund, you’ll need to change the name on the account to the Trustee’s name and the name of the Fund.
To include some assets in the Fund, you can name the Trust as the primary Beneficiary. For example, you’ll find that a life insurance policy or 401(k) can have the Trust as the beneficiary designation, so it will fund the Trust upon your passing.
If you have personal property you want to include in the Trust, you’ll need to draft a legal document that lists the assets you want to transfer and states that they are owned by the Trust.
Funding a Trust can be confusing, and making an error can put your assets and beneficiaries at risk. As such, it’s in your best interest to connect with an experienced attorney from Krause Law to assist you with this matter. Our firm will work with you to help guide you through the process to ensure your wishes are adhered to upon your passing. When you need help, our team is here. Contact us today to learn how we can fight for you.
