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What Assets Can You Include in a Living Trust

May 22, 2023
5 Min Read

A living trust is an essential estate planning tool that allows individuals to protect and manage their assets during their lifetime and efficiently transfer them to their beneficiaries upon their passing. One of the key aspects of creating a living trust is determining which assets to include in it. The assets you can include in a living trust generally depend on their type and the jurisdiction’s laws where the trust is established. Additionally, always consult with legal professionals such as TrustBox when creating and implementing a living trust to ensure it meets your requirements and aligns with the laws in your jurisdiction. TrustBox is a platform that allows you to generate, store, and access wills, trusts, and power of attorney documents online from anywhere in the world. Please note that consulting with an attorney or estate planning professional is crucial to ensure compliance with the specific laws applicable to your situation.

Following are the various types of assets that can be included in a living trust, providing you with a comprehensive understanding of how this estate planning instrument can help you safeguard your wealth and streamline the distribution process.

  1. Real Estate:

Real estate is often a significant asset in an individual’s estate. Placing your primary residence, vacation home, rental properties, or undeveloped land within a living trust can offer several benefits. By transferring these properties into the trust, you retain control as the trustee while ensuring seamless management and distribution to your beneficiaries upon your passing. TrustBox can assist and help you in real estate matters such as asset protection, estate tax planning, trust and ownership structures, and succession planning. TrustBox also avoids probate, potentially saving time and costs associated with the court process.

  1. Financial Accounts:

Various financial accounts can be included in a living trust, such as savings accounts, checking accounts, certificates of deposit (CDs), money market accounts, and brokerage accounts. By transferring these accounts into the trust’s name, you maintain control over your assets while designating successor trustees to manage them if you become incapacitated or upon your death. It streamlines the distribution process and ensures your beneficiaries receive the assets as you intended.

  1. Investment Portfolios:

If you have a diverse investment portfolio, including stocks, bonds, mutual funds, or other securities, placing them in your living trust can provide control and continuity. By doing so, you ensure that your investment strategy remains intact during your lifetime and, upon your passing, your beneficiaries can benefit from the growth and income generated by these investments.

  1. Business Interests:

For business owners, a living trust can prove invaluable in managing their business interests. If you own a sole proprietorship, partnership, or limited liability company (LLC), placing these business assets in your trust allows for a smooth transition of ownership and management, particularly in the event of your incapacitation or death. It helps maintain the continuity of your business operations while safeguarding your beneficiaries’ interests.

  1. Intellectual Property and Royalties:

Intellectual property assets, such as patents, trademarks, copyrights, and royalties, can also be included in a living trust. If you hold valuable intellectual property rights, placing them in the trust ensures their proper management and protection. Additionally, a living trust can help facilitate the transfer of these assets to your chosen beneficiaries while avoiding potential disputes or legal challenges.

  1. Personal Property:

A living trust can encompass a wide range of personal belongings, including vehicles, jewelry, artwork, antiques, collectibles, and other valuable possessions. While the inclusion of personal property in a living trust may not always be necessary from a legal perspective, it can simplify the overall administration and ensure a smooth transition for your loved ones.

  1. Digital Assets:

In the digital age, it is crucial to consider the inclusion of digital assets in a living trust. These may include online accounts (email, social media, online banking), digital photographs, crypto currencies, domain names, and other virtual properties. By specifying how these assets should be managed and accessed, you can provide clarity for your loved ones and prevent potential complications.

  1. Life Insurance Policies:

Although life insurance policies typically have designated beneficiaries, you can name your living trust as the beneficiary, providing added control and management over the policy proceeds. Placing life insurance policies in a living trust can offer several advantages and benefits as part of your overall estate planning strategy e.g., centralized management, privacy and probate avoidance, control and flexibility, and estate tax planning.

Creating a living trust offers numerous advantages in estate planning, providing individuals with greater control over their assets, avoiding probate, and facilitating the smooth transfer of wealth to beneficiaries. By understanding the diverse range of assets that can be included in a living trust, you can make informed decisions to protect your wealth and ensure its seamless distribution according to your wishes. It is advisable to consult with an experienced estate planning attorney or attorney familiar such as TrustBox to navigate the complexities and tailor a living trust that aligns with your specific needs and goals.

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