A Living Trust is a legal document that is created during a person’s lifetime and is used to manage their assets and property after they pass away. One of the main benefits of a Living Trust is that it allows for the distribution of assets to beneficiaries without the need for probate court. However, in order for a Living Trust to be effective, it must be properly funded.
Funding a Living Trust can seem like a daunting task, but it is a relatively simple process with the help of an attorney. In this article, we will discuss the steps involved in funding a Living Trust and provide some tips on how to make the process as smooth as possible.
The first step in funding a Living Trust is to identify all of the assets that will be transferred to the trust. This may include real estate, bank accounts, stocks, and personal property. It is important to note that not all assets may need to be transferred to the trust, and it is up to the individual to decide which assets they would like to include.
Once you have identified the assets that will be transferred to the trust, it is important to create a list of these assets and their current titles. This list should include the names of the current owners of the assets, as well as any co-owners or beneficiaries.
The next step in funding a Living Trust is to complete the necessary forms. These forms will vary depending on the type of asset being transferred, but they will typically include a deed, transfer form, or beneficiary designation form. An attorney can assist with this process and ensure that the forms are completed correctly.
Once the necessary forms have been completed, the assets can be transferred to the trust. This is typically done by signing over the assets to the trust, such as transferring a deed to a piece of real estate or adding the trust as a beneficiary to a bank account. It is important to note that some assets, such as stocks, and businesses may require additional steps in order to be transferred to the trust.
Once the assets have been transferred to the trust and any necessary beneficiary designations have been updated, it is important to review and update the trust as needed. This may include adding or removing assets, updating beneficiaries, or making changes to the distribution of assets. An attorney can assist with this process and ensure that the trust is in compliance with state laws.
Johnston Tomei Lenczycki & Goldberg LLC is a law firm servicing Lake County, McHenry County, and Cook County. We pride ourselves on catering to our clients’ diverse legal needs. Contact us to learn more and get started.
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