Who Owns The Property In A Trust?
Living Trust Frequently Asked Questions
Doing proper Estate Planning is incredibly important because you are planning for the future of your family and your assets. But sometimes Estate Planning can be confusing.
One of the most common questions we get asked at our law firm is who owns the property in a Trust?
The short answer is you…
Your Living Trust outlines who you’d like to receive your property after your death, and who should manage the distribution of that property.
While you’re alive, you place your property into the Trust and manage it yourself as the Trustee – just as you do now.
When you die, the person you’ve chosen as your Successor Trustee will start managing the property according to the strict directions you’ve outlined in the Trust.
When you set up a Living Trust, you fund the trust by transferring your assets from your name to the name of your Trust.
Legally your Trust now owns all of your assets, but you manage all of the assets as the Trustee.
This is the essential step that allows you to avoid Probate Court because there is nothing for the courts to control when you die or become incapacitated.
The concept is simple, but this is what keeps you and your family out of the courts.
Do I Lose Control Of The Assets In My Trust?
You keep full control of all of the assets, they are just in the name of your Trust.
As Trustee of your Trust, you can do anything you could do before – buy and sell assets, change or even cancel your Trust.
That’s why it’s called a Revocable Living Trust.
You even file the same tax return. Nothing changes but the name on the titles.
How Do I Transfer Assets Into A Trust?
Typically you will change the titles on real estate, stocks, CDs, bank accounts, investments, insurance and other assets with titles.
Most Living Trusts also include jewelry, clothes, art, furniture and other assets that do not have titles.
Some beneficiary designations (for example, insurance policies) should also be changed to your Trust so the court can’t control them if a beneficiary is incapacitated or no longer living when you die (IRA, 401(k), etc. can be exceptions.)
How Do I Make A Trust?
If you’d like to set up a Living Trust, it is usually best to consult with an experienced Living Trust Attorney.
Over the past decade, we’ve helped 1,000s of clients set up all manners of Living Trusts, Wills, Powers of Attorney, and Estate Plans.
We’d be happy to answer any questions you have about Living Trusts.
Just give us a call at (248) 613-0007 to schedule your complimentary consultation.
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Written By Chris Atallah - Founder, Rochester Law Center, PLLC
Written By Chris Atallah - Founder, Rochester Law Center, PLLC
Chris Atallah is a licensed Michigan Attorney and the author of “The Ultimate Guide to Wills & Trusts – Estate Planning for Michigan Families”. Over that past decade, Chris has helped 1,000s of Michigan families and businesses secure their futures in all matters of Wills, Trusts, and Estate Planning. He has taught dozens of seminars across the State of Michigan on such topics as avoiding the death tax, protecting minor children after the parents’ death, and preserving family wealth from the courts and accidental disinheritance. If you have any questions, Chris would be happy to answer them for you – just call at 248-613-0007.
