Creating a living trust as part of your estate plan in Georgia, can have many benefits. A living trust is a legal entity that manages your property and assets, then helps to distribute them once you pass. The trust is not functional, however, until you place your assets and property in it.
Transferring your property is simpler that you may think. Once you make a complete list of all property and assets that want to place in the trust, you can get started.
What kind of trust do you have?
Before you make a transfer, you want to consider whether you have a revocable or irrevocable trust, according to Legal Zoom. With a revocable trust, you remain owner of the property and can make changes, such as adding property to the trust, taking items out and changing the beneficiaries. When you place items in an irrevocable trust, however, you transfer complete ownership of the property to the trust.
How to make a transfer
Placing real property in the trust is as easy as filling a quitclaim deed or a warranty deed. While a quitclaim deed is the most popular, a warranty deed may make matters easier for the beneficiaries of the trust. Keep in mind, if you transfer property into an irrevocable living trust, you receive a real estate tax benefit. Update your documents, including your homeowners insurance so you can receive those benefits. You can also transfer the following:
- Financial assets
- Personal possessions
- Life insurance policies
Certain items cannot be placed in the trust, including individual retirement accounts. Yet, you may place the trust as a beneficiary to the retirement account.