When we create a living trust for a client one of the most important steps is to transfer the assets into their living trust, as well as list their assets on the “Schedules”. While it is still necessary to change the ownership of your assets to Living Trust Dated listing the assets on the schedules provides a nice backup to show it was your intent to have your assets in your living trust, as well as a good running list of what assets your own.
With each living trust we include different schedules for different situations. For a married couple there are three schedules. The main schedule is the “Schedule A” for all their join assets, or in California Community Property. Schedule B is for husband’s separate property and schedule C for wife’s separate property. For an individual, or a married couple doing separate trusts or domestic partners there is only one schedule, schedule A. Sometimes a married couple doing a join estate plan will have joint assets, but the husband’s half is his separate property and the wife’s half is her separate property, or if you aren’t married but say you have an asset with your siblings. You could own 1/4th of a rental property, for instance, you would still list that asset and note your portion is 1/4th.
As many of you know we normally say DO NOT WRITE on your original documents, as Amanda discussed in her blog last October ( https://falkandcornell.com/blog/2010/10/good-idea-handwritten-living-trust/ ) HOWEVER your schedules are the one exception. In fact we encourage you to write on your schedules as your assets change. Did you recently close a money market account? Make sure you line through the asset you no longer own and date and initial to the side. Bought that beach house you have been eyeing for retirement? Make sure to write the address and what percentage you own, initial and date. The only items you do not include on your assets schedules are beneficiary designated accounts, such as 401(k), IRA’s and life insurance, but if in doubt put it on your schedule it won’t hurt.
Every three years we invite our clients to come in for a complimentary review and at that time we will update your schedules for you so you have a clean copy. If you have been keeping them up to date it makes our job, and yours much easier. Also you can download blank schedules from our website Here
If it’s time for your three year reivew don’t forgot to schedule your appointment!