Unlike wills, which list the deceased’s cumulative wishes in a tangible document, trusts are used to privately hold and transport money and assets after the holder passes away. For a trust to function, the trustor needs to fill it with assets and assign each to a specific beneficiary. If you’re wondering how to get started and which assets to set aside, take advantage of the following estate planning guide.

3 Types of Assets That Can Go in Living Trusts

1. Real Estate

For many individuals, their home is their most significant investment. By placing real estate in a living trust and not your will, you can save the beneficiary from paying hefty probate fees. Even if there is a mortgage on the property, you can still transfer the title through a living trust. In addition to your main residence, you might want to place vacation homes or investment properties in the trust as well.

2. Life Insurance

If you’ve taken out a life insurance policy to ensure your family is supported after your death, you can name the living trust as the beneficiary of the policy.

Although probate isn’t a concern with life insurance, putting this money in a trust is ideal for parents who would like an adult to monitor their child’s money until they come of age. For example, you could ask your sibling or the child’s godparent to manage the life insurance payout until your child turns 18. 

3. Valuable Personal Property

In some cases, the probate fees on your assets may be too low to bother placing them in a trust. However, valuable items such as artwork, antiques, boats, or even livestock are worth keeping out of probate. In this case, you can place them in your living trust to ensure they are given directly to beneficiaries.

Many people choose to place their pets in trusts, as well as a sum of money to give to the new owner specifically for their care. This way, pets aren’t left without a guardian for the weeks or months of will authentication.

If you have additional questions about estate planning, reach out to Louis C. Noto in Rochester, NY. With over 48 years of experience, this attorney will walk you through the process of drafting your will and trusts. With his individualized approach, this attorney also specializes in family law and civil cases. To learn more, visit the website. You can also call (585) 232-1815 to schedule an estate planning consultation.