Revocable living trusts serve as an important piece of many estate plans because they allow you so much flexibility in determining how you wish to transfer your assets after death. But what assets are we talking about? What should you transfer to your living trust? While your estate planning lawyer will give you specific steps you need to take and will advise you about the types of property you should transfer, here are some general categories that apply in most situations.
Personal Property
All of your tangible personal items, such as your furniture, jewelry, valuable artwork, collectibles, or family heirlooms, can be transferred to your revocable living trust. You may also want to consider transferring your personal automobiles or other vehicles, though some states have laws that allow you to transfer these vehicles outside of probate.
Bank Accounts
If you have individually owned bank accounts that do not have a right of survivorship, you can transfer these to your revocable living trust as well. Money market accounts, checking accounts, and savings accounts are typically transferred to living trusts, but certificates of deposit are often excluded. You may have to pay early withdrawal penalties if transferring the CD. If that is the case, you will need to wait until the CD matures and then transfer the funds to the trust.
Debts
If others owe you a debt, such as unsecured personal loans, you can transfer these to the trust as well. You’ll need to ask your attorney how to do this and be sure that you have any appropriate documentation.
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