Trust funding is a vital aspect of estate planning that helps ensure your trust operates as intended. At Casey Lundregan Burns, P.C. our team of experts are here to guide you through the process of transferring assets into a trust, which often involves re-titling or transferring ownership of assets from your name to the trust’s name. This step is crucial because a trust can only legally manage and protect assets within itself, and without proper funding, a trust may not effectively fulfill its purpose, leaving assets vulnerable and potentially subject to probate.
Types of Assets to Fund into a Trust
When creating a trust in Massachusetts, it is essential to understand which assets can be transferred and how such transfers should be implemented as different assets require different methods. Below, we have outlined some examples of common assets and how they can be funded into a trust:
- Real Estate: Real estate is one of the most significant assets to fund into a trust. A new deed that changes the property’s title from your name to that of the trust must be prepared and filed correctly to ensure the trust legally owns the property.
- Bank and Investment Accounts: For bank and investment accounts, the process typically involves updating the title of the accounts with the trust’s name. Such re-titling requires coordination with your financial institutions which ensures these accounts will be controlled by and managed according to the trust’s terms, and thereby typically bypass probate.
- Personal Property: Items like art, jewelry, and other valuable personal property can also be funded into a trust through a legal document known as an assignment of personal property wherein ownership of these items transfers to the trust.
- Business Interests: Business ownership and interests can also be transferred into a trust. The process will depend on the nature of the business and your ownership structure. It may involve transferring shares or membership interests to the trust. These transfers should be done in a way that aligns with existing business agreements.
- Life Insurance and Retirement Accounts: Life insurance policies and retirement accounts are not directly re-titled into a trust but are instead connected through beneficiary designations. Naming the trust as the beneficiary of these accounts allows the proceeds to be distributed according to the terms of the trust upon your death.
- Intellectual Property: Intellectual property, such as patents, trademarks, and copyrights, can also be funded into a trust. This can be a complex process which involves transferring the ownership rights of these assets into the trust..
Benefits of Trust Funding in Massachusetts
Trust funding in Massachusetts offers numerous benefits. By transferring assets into a trust, you ensure they are managed according to your wishes, both during your lifetime and after your passing. Additionally, trust funding can also offer privacy in respect to the assets included within as trusts are not publicly available compared to wills. Trusts also allow for efficient asset distribution, avoiding the lengthy and public probate process, protect assets from creditors, and provide a structured way to manage assets for beneficiaries who may not be prepared to handle a large inheritance.
Avoiding Common Mistakes in Trust Funding
Working closely with an experienced estate planning attorney, and regularly reviewing your estate plan to identify overlooked or newly acquired assets, ensures that all appropriate assets are adequately funded into the trust. A common mistake in trust funding often results from neglecting to transfer all intended assets into the trust, which can lead to some assets passing through probate.
How Casey Lundregan Burns, P.C. Can Assist
With over three generations of combined experience, our team understands the intricacies of trust funding in Massachusetts. By assisting in transferring assets, updating beneficiary designations, and providing ongoing guidance, we will diligently ensure your trust is correctly and effectively funded and aligns with your estate planning goals.
To learn more and begin funding your trust, please schedule your complimentary case evaluation online or over the phone at (978) 878-3519.