Once the trust This is the document which you will be preparing to avoid estate taxes and probate. It has possession of your property, and a system for caring for the property, both before and after your death. agreement has been signed, and assets have been transferred to the trust, the trust agreement is fully operative as to those assets. At this point, there are certain basic moves which the Trustee should make.
Insuring the Trust Assets. Any assets which have been transferred to the trust should be covered and protected by insurance. If an asset is already covered, the insurance policy should be revised to add the trust to a named insure on the policy. This can usually be don by your property Property is defined in three ways: 1) real property, which is the land and buildings located on the land; 2) personal property, which is the property you have in your house such as the couches, beds, furniture and other items that you can see and touch; 3) intangible property, which is the property which cannot be see or held. This property is the stocks and bonds that you own, bank accounts, and insurance coverage. and casualty insurance agent at no additional cost. If personal property, a residence, or an automobile have been transferred to the trust, the trust should make certain that these assets are covered by insurance and that the Trustee is the named insured. It is suggested that you send a copy of your Schedule of Assets transferred to the Trust to your insurance agent.
Placing the Trust Assets in a Safe Location. Assets such as stocks and bonds, which you have transferred to the trust, should be placed in a safe location, such as a safe deposit box. If the safe deposit box holds only trust assets, and is in the name of the trust, you will have no problem in identifying bearer bonds or unregistered securities as trust assets. There will be a problem if the safe deposit box is taken out in your name alone. If you successfully transfer all you assets to your trust you will have no probate This is a court procedure which is used to re-title property after someone dies. A probate action determines who has the title to what property after you die. Probate is very costly and is to be avoided if possible. Probate can be avoided by properly preparing a living trust. of those assets.