How Do I Fund My Trust?
When you create a trust to protect your wealth, it is imperative that you do not forget to fund a trust. There are times when people go through the trust creation process but do not realize that they also need to actually follow through on the last step of funding the trust that you have created. If you don’t take this final step, your trust will not provide you with the asset protection that you expect and it will leave you and your family vulnerable to significant financial loss.
Zimmer Law Firm can help you to determine how best to fund your trust to ensure that your wealth is appropriately transferred. You should give us a call for personalized advice on the trust creation process so you can get the right legal advice to make certain your trust will work as you planned to protect your money, property, and loved ones. You can also read on to find the basic steps that you are involved when you fund a trust so you’ll have some idea of what the process entails.
Determine what assets you want to transfer to your trust
You will need to first decide which of your assets you want your trust to take ownership of. Be sure to talk with an attorney about the implications of transferring property or money into a trust as there could be tax implications associated with this change in ownership. You will also need to consider whether transferring the assets into a trust could affect any mortgage loans that you may have outstanding on the property. An attorney can advise you on what assets you should move into the trust.
Change the ownership of those assets so the trust becomes the new legal owner
Trusts work because the trust becomes the legal owner of the property, even as you continue to remain in possession of it. That means when you fund a trust, you go through the process of actually transferring legal ownership to it. This means taking step such as changing titles and deeds to real property.
You’ll also likely want to name your trust as the beneficiary of pay on death accounts or life insurance — although this is not always desired, it is common to take this step. An attorney can assist you in deciding if you want to change your beneficiary to the trust and can also help you with the logistics of formally transferring the ownership of all your money and property into the trust.
Make certain your trust document is legally valid and provides the right instructions
Finally, you will want to ensure that your trust document is a legally valid one so when the trust becomes the official owner of money or property, the trust provides the protections that you expect and that you created the trust to provide. You’ll also want to confirm that your trust document is structured appropriately with the right instructions so that a backup trustee can take over management of assets in case of incapacity if you are the primary trustee.
Make certain too, that you have chosen a responsible person to act as trustee and trust administrator who facilitates the trust administration process after your death — and that you have made your wishes clear regarding who should be trust beneficiaries.
Getting Help from a Trust Lawyer When You Want to Fund a Trust
When you want to fund a trust, you need to make certain that you get the right legal help from a qualified professional who understands the process and who will work closely with you to facilitate the transfer of assets. Zimmer Law Firm knows the ins-and-outs of trust law in Ohio and our Cincinnati trust lawyers will guide you through every step of the trust creation process in order to ensure that your trust is a legally valid one that provides the expected protections for your money and property.
To learn more about the process of funding a trust and using a trust to protect your family and assets, join us for a free seminar. You can also give us a call at 513-721-1513 to get personalized advice.