If you want to make sure your assets are passed down to your beneficiaries in a timely manner once you pass away, you may want to consider the benefit of revocable living trusts. However, it is important to note that some assets can go into the trust while others can not. If you’re an Illinois resident, here are some important things to keep in mind when planning your estate.
Which assets can go into trusts?
Don’t assume that everything will be permanently in place while you sign the documents for your trust at your lawyer’s office. Trusts are only part of the solution for managing your estate. In order for your revocable living trust to be valid, you should fund the trust by transferring specific assets into the trust.
Real estate is one of the main assets you can transfer into your trust. Your home. is likely your largest assets and living trusts can transfer real estate in a timely manner. This will help your relative avoid probate proceedings for your residential and commercial property even if the real estate is in a different county or state. If there is a mortgage attached to the property, you’ll have the retitle the mortgage to the name of the trust.
Additional assets to place in a trust
In addition to adding your real estate to trusts, you can also add valuable items like collectibles, family heirlooms, art, furniture, or jewelry to the trust. If you don’t have a title or legal certificate for the items, they will be listed on a schedule with your trust documents. If the items do have certificates or titles, you may have to quitclaim the ownership interest of the items into the trust.
You may also want to consider the benefits of transferring interest from your business into a revocable living trust. This can keep your family from having to hefty taxes on your estate or settle business debts on your behalf.