There are many benefits to a revocable living trust. It is a wonderful way to help you manage your estate while you are still alive and ensure that your heirs receive assets in a timely manner. One of the biggest advantages of a revocable living trust is that it allows you to maintain control of the assets while you are alive but will also help your heirs avoid probate after your death if you fund it while you are alive.
However, in order for a living trust to be of any service, you must fund the trust. This means transferring assets to the trust. According to FindLawl, there are two main ways of doing this: after you die by means of a pour-over will, or while you are alive using a title transfer.
What is a pour-over will?
With a pour-over will, all assets that are not already assigned to your heirs will automatically transfer to the trust after your death. However, if you take this approach, it will not help your heirs avoid probate. If you wish to avoid probate, you must fund the trust while you are still alive.
How does a title transfer work?
If you possess a title for the asset, you will need to transfer the asset into the trust. Examples of assets with titles include bank accounts, real estate, investment and brokerage accounts and automobiles.
In the event that you are dealing with possessions that do not have legal titles, you will need to transfer your rights to that property to your trust’s trustee. Items that do not have titles involved clothing, furniture, jewelry and intellectual property including royalties or business ownership. Having a knowledgable estate planning lawyer to help you navigate the process is crucial.