There is a common misconception that once you sign your estate planning documents, you are now automatically protected. Although that is the case for most documents, when it comes to your trust, there is still work to be done. In order for a trust to protect you, it needs to be “funded,” meaning that title to all of your assets must be changed to the name of your trust.

We often like to refer to revocable trusts as a “basket” that holds all your assets. Everything that is in your basket will avoid probate, and instead be distributed according to the terms of your trust. Depending on the type of assets you have and your family situation, title to your assets can be directly in the name of the trust or name the trust as a beneficiary. Below is a list of how common assets should be titled:

Real estate – your home should be titled in your name as trustee of your trust, and a new deed must be recorded with the appropriate county recorder’s office.

Bank / Investment accounts – checking, savings, brokerage and stock accounts should be titled in your name as trustee of your trust.

Life insurance – in most cases, your life insurance policy will not be directly owned in your trust, but instead will name your trust as a primary or contingent beneficiary depending on your family’s circumstances.

Retirement accounts – your IRAs, 401(K)s and other tax deferred retirement accounts will not be owned by the trust, but instead will be distributed by beneficiary designations.

If you are married, your spouse will typically be the first beneficiary; and your trust, your adult children or adult beneficiaries will be listed as contingent beneficiaries. The new year is a great time to review how your assets are titled. If you need help with titling your assets or discussing strategy on how they should be titled, please get in touch with us. We’d love to hear from you.

From all of us at Lynk Law, Inc. we wish you a happy, healthy and prosperous 2016!

Glendale Location

616 E. Glenoaks Boulevard, Suite 203

Glendale, CA 91207

Sherman Oaks Location

15303 Ventura Boulevard, Suite 900

Sherman Oaks, CA 91403