Why It is a Great Idea to Set Up a Trust

As you may be aware, a will distributes your assets upon your death and a trust distributes your assets while you are living and upon your death (thus called “a living trust”).  A will does not avoid probate but a trust can, if the assets are transferred into the trust before your death.

Do you have a trust already created?  If so, have you transferred all your assets to the trust?  Many times trusts are created, but the assets are never transferred or transferred incorrectly.  If you do not transfer your assets, your trust is not worth the paper that it was printed on.  Your estate will go to probate, which will cost your beneficiaries a lot of money and time, keeping your assets in limbo until they are transferred via the court.

So you ponder whether or not you have transferred your assets, but you are not sure.  Look at your deeds—are they in the name of the trust or do you have a beneficiary deed naming the trust?  Are your bank accounts, CD’s, mutual funds, stocks in the trust name? Do you have the beneficiaries correctly named in your insurance, 401(k), pension, etc.?  Did you change the membership of your LLC to the trust? How about that corporation—did you transfer the stock into the trust?



If it’s time for a checkup, call me and I will go over your trust and assets and determine whether they have been transferred and if not, assist you in transferring them.