The Advantages of Changing a Bank Account Title to a Living Trust

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Changing a bank account title to a living trust has a number of clear advantages that can't be ignored. Learn about the advantages of changing a bank account title to a living trust with help from a professional financial adviser in this free video clip.

Part of the Video Series: Insurance & Personal Finance FAQs
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Video Transcript

This is Teresa Dentino, CEO and founder of The Financial 411 in Woodside, California. We're going to talk about the tax benefits of changing the title of your checking account to reflect the title of your living trust. A living trust is an estate planning vehicle that helps in several ways to both potentially reduce estate taxes and also helps with bypassing probate court. Probate can be a timely as well as costly process and therefore you want to make sure that all of the assets under your name are now titled and reflect the title of your living trust. Changing title on an asset can vary depending on the type of asset that you hold. Whether this is real property or securities investments and even your checking accounts. So it is important that you take your trust to the bank and they will know how to change the title appropriately to match the same title that is on your trust document. This is what is called funding the trust. And if you are consistent about retitling every asset this will provide a great benefit to your heirs. Also, by having the correct title on your checking accounts this can avoid problems with funding certain types of trust that may go into play upon your death. Obviously, this can get complicated so it's really worth it to check with your estate attorney and make sure you are making the right steps. This is Teresa Dentino, CEO and Founder of The Financial 411 in Woodside, California.

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