One of the most common misconceptions surrounding estate planning is that the only necessary document is a will. Though this is an incredibly important document, there are a considerable amount of additional estate planning tools that you can utilize to help ensure your financial wishes are honored upon your passing. One of the best options is to establish a trust fund. However, creating a trust is only half of the battle – you also need to fund your trust. If you’re unsure how to do this, the following blog explores what you should know and why working with Tampa trust lawyers is in your best interest during this process.
What Are the Benefits of a Trust Fund?
First and foremost, there are a number of different kinds of trusts that you can establish based on your specific needs. As such, you should discuss your options with an experienced attorney before establishing any kind of trust to ensure you can utilize the best tool for your needs.
Generally, however, one of the most important benefits is the protection it can provide your beneficiaries and your assets. When you establish a trust fund, you technically transfer the assets out of your name and into the name of the trust fund. As such, if you are sued or you pass away with debt, you’ll find that the assets held in your trust are protected and cannot be seized by a creditor.
You should also note that a trust fund can help you include the different terms and conditions of your trust fund. For example, if you leave your 18 grandchild a significant amount of money in a will and pass away, they may misuse the funds. However, placing it in a trust allows you the opportunity to create more specific terms. You can place the funds in the trust under the terms that your grandchild can access the funds when they turn 25 and can handle a considerable amount of money more responsibly.
How Do You Fund a Trust After Its Creation?
It’s important to understand that establishing trust is only have of the process. Once you’ve established the trust, you must ensure you place assets in the fund!
Generally, there are two methods to transfer assets. Typically, you’ll find that the first option is to retitle assets. Instead of leaving assets titled in your name, you can retitle them in the name of your trust so they are held in the trust. This method is applicable to assets like personal property, vehicles, and bank accounts.
The other option to transfer assets into your trust is to change the beneficiary designations. Some assets, like retirement accounts or life insurance policies, have an option to name someone directly as a beneficiary. Typically, this will be the beneficiary you directly wish to transfer the asset to upon your passing. However, if you want to place this asset in the trust, you should name the trust as the beneficiary of these assets.
If you are ready to establish a trust fund and need assistance placing these assets in the fund, it’s in your best interest to connect with an experienced attorney. At Tampa Law Group, our dedicated legal team will help guide you through the process so you can have peace of mind that your future is planned according to your wishes. Don’t hesitate to contact us today to learn more about how we can assist you in these complicated matters.
