What Items Should Be Put Into a Living Trust?

It is not smart to put all kinds of property into a living trust. As a practical matter, you should only put property in the trust that you think you will own for a significant amount of time.

Generally

A living trust is an estate planning document that can be used to avoid probate, to share property, to minimize taxes, and to protect property from creditors.

Purposes

Your purposes in creating a living trust will generally dictate what property you want to put in the trust. If, for example, you want to avoid probate, then you should put all property that you think you will own until the day you die.

Real Estate

Real estate is generally a great candidate for living trusts. This includes investment or rental property, as well as the home or homes in which you reside.

Trust Schedule

Many types of personal property, like jewelry and household furnishings should be put in trust to avoid probate. These items are put into trust simply by listing them on the trust schedule and they are taken out of trust simply by removing them from the trust schedule.

Accounts

Some financial accounts, like private investment accounts, stocks, and bonds, are wisely put into trust. Other types of accounts, like personal bank accounts, retirement accounts, and life insurance policies, should be left out of trust.

References

• Nolo's Make Your Own Living Trust; Attorney Denis Clifford; 2009.