What Does A Living Trust Include?

26 January 2015 by Jonathan Phillips

A living trust is a legal document that includes information about your bank accounts, home, and other assets, and transfers these assets to a beneficiary after your passing. You name someone as the trustee, who then takes over the assets if you die. It is often used as a partial substitute for a will, and the trust allows you to avoid certain probate fees. Here is more information about how to prepare a living trust and what it should include:

What do you include in a living trust?

You want all of your personal and business assets to be included in your living trust. This is a rundown of everything that should be included in the living trust:

Bank Accounts

Start with your bank accounts. All personal checking and savings accounts should be included as assets in the living trust. This includes accounts at your local bank or credit union. All you need to do to include your bank accounts and switch the paperwork at your bank so that it goes to your beneficiary or trustee.

You also want to include any retirement accounts in the living trust, including a 401k from your previous job. The alternative to including your bank accounts in the living trust is to do a payable-upon-death trust.

Real Estate

One of the most valuable assets anyone can have is real estate, and this is probably where most of your money is. Always include real estate in your living trusts, whether you own your own home or condominium, an apartment you are renting out, or you own land that you haven't done much with yet.

You don't want your home to go through probate, so be sure it is included in the living trust. However, if you own land or real estate with someone else, you don't need the living trust, but a transfer-on-death deed.

Small Business Documents

If you have a small business, you definitely want to include that in your living trust. It can be difficult going through probate with a small business. With a living trust, you can transfer your business interests to your beneficiary instead. This includes any type of small business, from a partnership to a sole proprietorship. It also includes limited liability companies and interests related to being a freelance worker.

Vehicles

Not all vehicles need to go into your living trust, since it can get confusing and frustrating when dealing with auto loan lenders and insurance companies. Instead, limit the living trust vehicles to any that are valuable antique vehicles. You can also include any mobile homes you own attached to land as your vehicles.

Speak to a probate attorney if you have questions about probate and your living trust. To learn more, contact a company like Gruber & Associates, PC with any questions you have.

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