Are your assets in the trust?
a recent blog was a reminder to make sure that your house is titled in the name of your trust. Since one’s home can be your largest asset, it’s of utmost importance to have it titled correctly.
But your other assets need to be titled in the trust as well, and have correct beneficiary information. If assets aren’t titled in the trust, the trustee of your estate may end up needing to file a Probate Petition in court. The result will be estate money spent on court and lawyer fees; having accounts properly titled will avoid probate.
Here’s a quick rundown on how assets should be titled:
A standard checking account, which contains less than $10,000.00 on average, doesn’t need to be titled in the trust.
All savings accounts, brokerage accounts, stocks, business interests or other monetary assets which are not retirement accounts should be titled in the name of the trust.
Generally, insurance policies should have the trust listed as the first beneficiary.
Generally, IRAs should have the spouse listed as first beneficiary, adult children as the contingent beneficiary, and the trust as the second contingent beneficiary.
For insurance policies and IRAs, this is the “general” advice we give. Every estate is different, consequently, it always a good idea to address the beneficiaries of IRAs and insurance policies with your attorney when you create your trust, or have your 3-year trust review.