While providing your loved ones with a trust is one of the greatest gifts you can offer, navigating the numerous ins and outs of an estate plan necessitates professional legal assistance to ensure that the job is done properly. Every year I advise dozens of clients on how to manage their trusts, but as the end of our working relationship approaches I worry how they will fare during the next, equally important step in their estate planning- funding the trust.
Why is this so important? A trust must be funded to remain valid. If it is not, your trustees will not even be able to access what you have set aside for them. Your hard work and initial investment in the trust will be null.
What you safeguard in your trust can depend on what you want to use the trust for and whether your legal relationship status is single, married, or blended. I recommend that my clients identify which assets they wish to protect from the categories below.
1. Life Insurance
2. Personal property
3. Real property
4. Personal and recreational vehicles
6. Stocks and bonds
7. Bank accounts
8. Non-retirement Investment Accounts
9. Business interests
10. Nobody should have to go through this process alone, so collect advice from financial specialists.
While a list like this may seem intimidating, the actual process of funding your trust should not take much of your time if you have a good roadmap. Plus, you should only have to transfer your assets once. (Though the
required course of action may vary depending on the category of assets you wish to protect!) Once you have completed the process, your assets will be secure for your family. Good-bye, Worry and Hello there, Peace of Mind!