One of the most common misconceptions surrounding estate planning is that the only document you need is a will. While this is an incredibly important document, it’s important to understand that there are a number of additional estate planning tools you can utilize to help ensure your estate is planned according to your wishes, like a trust. However, if you create a trust, understanding how to fund it is just as imperative. If you’re unsure how to navigate this process, you’ll want to keep reading to learn more about this process and the importance of working with St. Louis wills & trust lawyers for this process.
Why Should I Consider Establishing a Trust?
First and foremost, it’s imperative to understand that there are a variety of different trusts that all serve different purposes and have various benefits. However, they can all provide important benefits.
Generally, one of the primary benefits of trust funds is the protection they can provide for your assets and beneficiaries. When you place your assets into a trust fund, they are technically removed from your estate. As such, if you are involved in a lawsuit or you have outstanding debts following your death, the assets held in the fund are protected and cannot be seized.
Another primary benefit of creating a trust is that it grants you greater control over the terms and conditions of how your assets are distributed to your beneficiaries. For example, if you pass away, the assets held in your will will be distributed shortly after your passing. This means the assets left for your 18-year-old grandchild would be immediately given to them. However, if you have a trust fund in place, you can establish terms that the assets will be held for your grandchild until they are older, ensuring they won’t misuse the assets they receive.
How Do I Fund a Trust?
Once you’ve established the terms and conditions of your trust fund, you’ll need to fund it! Though this can seem like a complicated process, it’s easy with the help of an experienced attorney to guide you through this process.
Generally, there are two options to fund a trust. Typically, the first option is to retitle your assets. This means that you are removing your name from the title, meaning you relinquish legal ownership and place the name of your trust on the title. Retitling applies to assets like bank accounts, personal property, and vehicles.
Your second option is to change the beneficiaries of certain assets. For example, you’ll find that things like retirement accounts or life insurance policies have a beneficiary designation. Like retitling assets, you’ll need to change the beneficiary to your trust fund.
As you can see, creating a trust fund has many benefits. However, creating a fund is only half the battle, as funding it is just as imperative. As such, if you are ready to establish your trust fund, you’ll find that working with an experienced attorney can help you through this process. At Stobie Family Law Group, we understand how overwhelming this can be, which is why our team is committed to helping you explore your options so you can choose the best trust for your needs. Contact us today to learn more.
