Many people are aware of the benefits of choosing a revocable living trust instead of just relying on a will in the event of their death; however, people still make huge mistakes regarding the funding of their trusts. One costly mistake is failing to transfer certain assets into the trust.
Funding a trust is simply just that—transferring your bank accounts, real estate property, and other assets from your name to the trust’s name. To do this, you will actually have to change the title of your real estate property to the name of your trust. Although you may have a living trust, it may not do anyone any good if you don’t fund it properly (transferring your assets by changing titles)
Making Sure Your Property is Transferred to Your Trust
Your revocable living trust will only own assets you put into it. This means that if you forgot to transfer your real estate property or change the title after you refinance it, chances are your property will have to go through probate upon death. In order to avoid probate and to make things easier on your heirs and trustee, you need to place your new real estate property or any real estate property you own—even in another state—in the name of your trust.
Unfortunately, many people do not realize that when they refinance their property, mortgage companies generally do not put property back into a trust’s name. This is because they require business to be conducted in someone’s personal name, and then the property could be transferred back to the trust once the property refinancing goes through. You or your attorney can transfer your real estate property into your trust by transferring the property’s title, drafting a new deed, getting the paperwork notarized, and sending it to the local Registry of Deeds office. Although this is an inconvenience, it should not be ignored for too long or else it could be too late.
Real estate property is not the only thing you need to transfer to your trust. A Georgia estate-planning attorney can prepare an assignment/transferring document so that your other personal property such as artwork, jewelry, electronics, and more can be transferred to your trust.
For your estate planning needs in Georgia, call the Law Offices of Shane Smith to speak with a qualified Peachtree City estate-planning lawyer at (770) 487-8999.