What Assets Cannot Be Placed in a Trust?
It is essential that you have a will and a trust as a part of your estate planning; however, did you know that there are certain assets that you should not include in your trust? An estate planning attorney from Smith Taire Legal can ensure that you avoid putting the wrong assets in your trust when creating your estate plan.
Assets You Cannot Put Into a Trust.
While there are a lot of different assets you can legally put into a trust, there are quite a few that cannot be included when building your estate plan. The assets you cannot put into a trust include the following:
Medical savings accounts (MSAs)
Health savings accounts (HSAs)
Retirement assets: 403(b)s, 401(k)s, IRAs
Any assets that are held outside of the United States
Cash
Vehicles
Even though you might want to protect these items when putting together your estate plan, there are other options to do so outside of adding them to a trust. For example, MSAs, HSAs, and retirement accounts should have beneficiaries listed on the paperwork for when you die. A lot of these accounts also have payable-upon-death instructions you can include.
As always, speak with an experienced Georgia estate planning attorney from the Smith Taire Legal team about your estate planning needs before making any decisions about your future.
Ron Carson, the founder, and CEO of Carson Group, explains the following about trusts in a Forbes article:
“However, it’s important to note that simply establishing a trust does not protect your assets. Any assets you want to be protected by the trust must be retitled in the name of the trust. Anything that is not titled to the trust when you die will generally have to go through probate.”
What Assets Can You Put Into a Trust?
The Smith Taire Legal team can help you build a trust that includes the correct assets according to the law. The assets you should put into a trust include the following:
Tangible personal property like artwork, furniture, a doll collection, sports collectibles, and more
Cryptocurrency
Limited liability companies (LLCs)
Insurance policies
Bank accounts: savings, checking, safe deposit boxes, money markets, certificates of deposit (CDs), mutual funds, and brokerage accounts.
Bonds, stocks, and other investments
Real estate property
Types of Trusts Available
There are multiple types of trusts available to protect your assets. Be sure to talk with your Georgia estate planning attorney about which type of trust is best for your assets. However, the various types of trusts typically fall into one of two categories: revocable trust and irrevocable trust. A revocable trust gives you the ability to change the terms of the trust whenever you choose. An irrevocable trust cannot be dissolved or changed at any time.
The Benefits of Creating a Trust
There are many benefits to creating a trust, including the following;
Maintain privacy by avoiding probate, which is part of the public record
Protect your beneficiaries
Provide money for children who have special needs
Maximize the flexibility of the trust
Preserve the wealth of your family
Promote your family’s values
Reduce or avoid conflict within the family at the time of your death
Call a Georgia Estate Planning Attorney Today
If you need assistance creating or revising your estate planning documents, Jammie Taire and the Smith Taire Legal team can help. We educate our clients on their estate planning options and make sure their final wishes are legally binding. Call us at 678-253-8133 if you have questions about your estate planning or wish to meet with an experienced Georgia estate planning attorney.