When you have a living trust, you are able to name someone as your trustee, who then takes over your assets if you pass. It is a legal document that has information about your home and property, bank accounts, and other assets. It also helps you to avoid probate fees that come with having a traditional will. Here are some things you should include in the living trust.
One of the most important things to include in your living trust is any property you own, since it is often the most valuable asset you have. In fact, the majority of your assets might exist in the property you own. All property should be listed in the living trust, including your main home and any vacation homes, commercial property you rent out, and any land you own. If you don't put property in the trust, it will go through probate after you die, which is a long and complicated process. The alternative is if you own the land with someone else, in which case you just need a transfer-on-death deed to be filled out.
Small Business Documents
You should also include small business documents and information in your living trust if you own a business. Going through probate with a small business is just as complicated as your property, so it is best to put it in the trust. In your living trust, you are able to transfer all business interests to the person you name as a beneficiary. This works with all types of businesses, including a partnership or sole proprietorship. They will own your part of the business upon death.
All financial accounts for your personal and business use need to be included in the living trust. This allows your beneficiaries to get the money you assign to them in the trust. Your trustee will have control over the accounts and know who you intended to give the money to. Include all checking and savings accounts, stocks and bonds, and business accounts. If you have any retirement accounts and 401k plans, that should also be included in the living trust. You can either choose the beneficiaries now, or simply leave it up to the trustee to decide who the money will go to.
If you still owe money on a car, it might not need to be included in the living trust, though you should have a note in your will or other legal document that explains how the car should be handled. However, you do want to include all antique and valuable vehicles in the trust.
Contact a legal office like Flett Manning Moore for more details.