HELPFUL RESOURCES
This information is for general purposes only. You should always consult with legal and financial/tax professionals. Attorney Robert Mansour is not an employee of Trust & Will. Robert Mansour is a California attorney and independent contractor providing guidance to Trust & Will clients. Robert is one of many attorney advisors nationwide who provide independent guidance to Trust & Will clients. This web page was prepared by attorney Robert Mansour.
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DEED SERVICES
Remember, if you have real estate, you must transfer that real estate to your living trust. Simply listing your real estate (or any other asset) on a "Schedule of Assets" is not sufficient. A new deed needs to be recorded (along with any applicable tax forms). We recommend the following services that can prepare and record new deeds for you.
IMPORTANT: After you've changed title on your real estate, ask your home insurance company to add your living trust as an "additional insured" to your policy (same for earthquake and umbrella insurance). Please do so for all real estate, not just your primary residence.
IMPORTANT: After you've changed title on your real estate, ask your home insurance company to add your living trust as an "additional insured" to your policy (same for earthquake and umbrella insurance). Please do so for all real estate, not just your primary residence.
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TRUST FUNDING GUIDE & THE BILL OF TRANSFER
Along with all your Trust & Will documents, they provide you with a "Trust Funding Guide" if you created a living trust. Please review this guide carefully. At the end of the guide, there is a document called "Bill of Transfer" that basically "assigns" all your personal property and other miscellaneous assets to your trust. This is a good "catch-all" (backup) document that you should also date and sign. It can also be notarized if you wish. This document may be helpful if you forgot to add an asset to your trust.
Also, make sure your "Schedule of Assets" is complete. This should contain a list of all trust assets. As you accumulate assets in the future, add them to your schedule (initial and date next to anything you add). Remember that assets listed on the schedule of assets are NOT actually in your trust until you change title on the asset. See videos below.
Also, make sure your "Schedule of Assets" is complete. This should contain a list of all trust assets. As you accumulate assets in the future, add them to your schedule (initial and date next to anything you add). Remember that assets listed on the schedule of assets are NOT actually in your trust until you change title on the asset. See videos below.
THE TWO FUNNELS GRAPHIC
THE TWO FUNNELS GRAPHIC below was created to help clients understand how their assets will pass once they create a living trust. Remember, your trust is not finished until it is signed and notarized. It does not exist until that happens. The date of the trust is part of its name. For example, "Smith Family Trust, dated January 12, 2024." Some assets go "in" your trust. That means you have to literally change the name on the asset (file a new deed, go to bank and change account name, etc.). Other assets pass through the "Beneficiary Forms" funnel. These assets should have beneficiaries listed. In many cases, naming your trust as beneficiary might make sense. For example, we generally advise clients to make their living trust the beneficiary of life insurance (assuming you want your trust to control the proceeds of the life insurance). For retirement accounts, it's generally best to name human beings as long as they are not minors. Also naming a spouse usually has tax advantages. You might also consider naming your living trust as beneficiary of retirement accounts (primary or secondary). That could be helpful if minors are involved. Consult with your CPA and attorney before making such decisions.
Think of your Estate Plan as a legal toolbox. The 4 major tools are the Living Trust, the Pour Over Will, Health Care Directive, and the Power of Attorney.
In many cases, naming your living trust as the beneficiary of your life insurance policy makes sense (especially if you want the life insurance proceeds distributed per the trust provisions).
Remember you must retitle your accounts to the name of your trust. On the left, the account is only in John and Mary Smith's name. On the right, you can see trust ownership.
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Similar to the above "Two Funnels Graphic", picture your assets in two separate buckets. Some are in the "Living Trust Bucket" and some are in the "Beneficiary Bucket".
Retirement accounts don't go "in" the trust. They pass per beneficiary designations (forms you fill out). In most cases, the spouse is primary followed by other people or the trust.
You must retitle your real estate to the name of your living trust. This is done by filing a new deed with your county recorder. That's how you put real estate "in" your living trust.
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YOU MUST RETITLE YOUR ASSETS
Listing your assets on the Schedule of Assets is helpful but doesn't mean the assets is actually IN YOUR TRUST. Some people believe that inputting their asset information into the Trust & Will software means their assets are "in the trust." That is a common misconception. For an asset to be "in your trust", you must change TITLE on the account or asset (real estate etc.). Remember that not ALL assets go in the trust. See other resources on this page for more details.
Here is an example of an account that is NOT IN THE TRUST and IN THE TRUST. Notice it's all about TITLE on the account.
Here is an example of an account that is NOT IN THE TRUST and IN THE TRUST. Notice it's all about TITLE on the account.
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BUSINESS INTERESTS
If you have a business interests (LLC, Corporation, or Sole Proprietorship), you generally need to "assign" your interests in said business to your living trust. That makes it clear you want the business to be owned by your trust and distributed along with all your other trust assets. However, before doing so, you need to make sure your LLC or Corporation does not prohibit such an assignment. Typically, if there is only one owner (or spouses), that's not a problem. However, when you have more than one business owner, there may be restrictions against doing so. Assuming you are able to "assign" your business interests to your living trust, you can use this form as a sample. Also, if you have an LLC or corporation, you may need to prepare documents on the business side including a Unanimous Written Consent of the board and shareholders. You should void out your old stock certificate and issue a new one reflecting trust ownership, update the stock ledger, etc. We encourage you to contact a business attorney to help with these matters (you can try attorney Roger Doumanian who is a referral partner of mine. You can mention my name as Roger knows me well).
FREE INSURANCE QUOTES
If you don't have life insurance, you may consider getting some to protect those who depend on you, especially if you have minor children. Also consider naming your living trust as the beneficiary of your life insurance policy. Click below to learn more.
VIDEO LIBRARY
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The 4 Basic Tools of Most Estate Plans (approx 10 mins)
Full Estate Planning Webinar (approx 45 mins)
* Keep in mind laws change. Some figures mentioned in this webinar may not be completely up to date. Understanding Your "Schedule of Assets" (approx 5 mins)
Business Interests and Living Trusts (approx 4 mins)
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Differences Between Wills and Living Trusts (approx 6 mins)
Funding Your Living Trust (approx 5 mins)
Basic Overview of a Trust-Based Plan (approx 7 mins)
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Finalizing Your Documents
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Once you are happy with your documents and how they read, it is time to consider finalizing your documents.
Remember, your documents aren't final until you have formally signed them depending on the protocol of each document (notary, witness, etc). Some documents require notarization and others may require witnesses. You can either print your documents directly from your Trust & Will portal or you can ask Trust & Will to send you the documents in a nice organized folder as seen in the graphic to the left. It's also a good idea to scan all your signed documents to PDF and save backups in the "cloud" using resources such as Google Drive and Dropbox (and similar online storage - many of which are completely free). Either way make sure your documents are nicely organized and your trustees and executors and others know where your important legal documents can be found. What good is your legal toolbox if no one can find it! |
* Keep in mind that laws change and the information contained in these above videos may not be completely up to date.
* Make sure you check with professionals when doing your estate plan.
* We may receive a small commission from the services recommended above. However, that does not affect your fees.
* Make sure you check with professionals when doing your estate plan.
* We may receive a small commission from the services recommended above. However, that does not affect your fees.