Creating a trust involves financial decisions planning. As you begin the road to creating a trust, you think about all your monetary finances to add. There are also concrete assets that don't hold monetary value. One of the many things you can transfer is personal property. But should you transfer property to a trust?
The answer isn't that simple. Analyze your property and trust with these considerations:
- The reason: A trust is made with the beneficiary or beneficiaries in mind. You want to gather all your finances and assets in one place so your loved ones or probate court doesn't do the work for you. If the trust is made for any other reason, a trust is not advised. Not only is it selfish, it won't provide as much benefit as you think.
- The asset: What do you want to add? You can't place anything in a trust. Items that are sold and bought often don't enter a trust because you may not want this in your possession forever. Most cars won't get in a trust either because they depreciate fast.
- The value: Big-ticket items like houses, boats, art, classic/antique cars, electronics and jewelry are of the most importance and will be added over other items. Items with little value don't need a trust fund.
- The ownership: Ownership is not paying monthly payment to a lender or car dealership. It's about complete ownership with no financial obligations. You have the title and/or deed in your name. If it going through monthly payments, you can add it now and pay it off.
- The location: Some assets are nearby; others are located in another state. One trust can gather property from every state easily. Otherwise, probate court will proceed for every state that has property available.
Transferring current property to a trust is harder than purchasing new properties and adding them to the trust immediately. There are costs, fees and taxes attached. We encourage you to get a free consultation about your trust. We will give you an evaluation and tell you your options. We hope you allow us to handle your trust. You can still use the property during and after the trust. It can be revised as often as you wish.
Our Torrance estate planning law firm knows all about trusts. We know the best course of action to make this process as seamless as possible. For more information on trusts, contact us.