What Should Be Put Into a Revocable Trust?
Many types of assets can be transferred to a revocable trust. A revocable trust is an estate planning tool in which you can place personal property, the terms of which can be altered at any time. By putting these assets into the trust, you can help keep them out of probate after you die. This type of trust can include investments such as stocks, bonds and mutual funds.
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What Is a Revocable Trust?
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A revocable trust is a type of estate planning tool that you can use to hold assets for you. When you put assets into this kind of trust, these assets no longer have to go through the probate process when you pass away. The trust is basically like a holding tank for any assets that you want to put into it. Since it is a revocable trust, it means that you can change it at any point you choose.
Financial Interests
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A number of financial interests can be put into a revocable trust. For example, if you own part of a business, you can put your share of ownership in the business into the trust. If you own stocks or bonds, you could put money into the trust arrangement. You could also put any mutual fund accounts or bank accounts that you may have into the trust. These assets can still generate income while they are in the trust.
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Physical Property
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Physical property also can be put into a revocable trust. For example, if you have real estate, you can put it into the trust to give to your beneficiaries when you die. You can also put other types of personal property into the trust, such as a vehicle. Even smaller personal property items like jewelry or collectibles can be placed into the revocable trust agreement.
Choosing the Property
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When choosing what property to include in the trust, you must consider how it will have an impact on your beneficiaries. Anything that you do not include in the trust must go through probate before it can be passed on to the beneficiary. Placing it into the trust ensures that the passing of the property will remain confidential. Certain items like payable-on-death accounts and jointly owned real estate will not have to go into the revocable trust to avoid probate as they are transferred automatically.
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