A living trust entrusts a third party to hold and direct assets on behalf of a beneficiary. It ensures any minor children are taken care of and protects your investments from taxes. However, determining which assets to fund this arrangement can be challenging. Use this guide to narrow your options.

3 Assets That Can Be Put Into a Living Trust

1. Savings Accounts

Rather than having your money go toward paying debts, put it in a trust to transfer the funds to loved ones. The trust can designate whether the assets go to the children’s guardian or directly to your kids when they turn 18. If you aren’t sure which route to take, you can adjust the living trust at any time while you’re alive.

2. Personal Property

Even physical belongings, like electronics, designer suits, and fine jewelry, have value and can become part of the trust. You’ll have to go over the logistics with an estate planner to determine what everything is worth and which items to pass to the next generation.

3. Stocks & Bonds

The money will continue to appreciate once it’s put into a trust—all you have to do is determine how to set it up. Some accounts may retain their dividends and interest while others can maximize distributions based on your beneficiary’s tax exemptions. Simplify the process by placing the original certificates into a brokerage account that’s under the name of the living trust.

If you want to set up a living trust, turn to Wills and Trusts Hawaii in Honolulu. These estate planning professionals recognize that each situation is different, so they’ll help you create a trust that suits your needs. They’ll also accommodate any changes if you want to adjust the document over the years. Get more information about their services online, or call (808) 792-8777 to schedule a free consultation.