Estate Planning Academy Episode 13: I have a Revocable Living Trust, Now What?

Espisode 13: I have a Revocable Living Trust, Now What?
Episode 13

The Biggest Mistake

The biggest mistake I see with a revocable living trust is creating it, doing some funding, but not finishing the job…

Just because you have a Trust, doesn’t mean it is a setup and forget thing

A Trust is a “living” document.  In addition to the initial setup, a Trust needs to be maintained and reviewed from time to time.

Your Trust Must be Funded

  • An empty Trust doesn’t do you any good
  • An empty Trust is called a “dry Trust.” A Trust is required to have some property in it.
  • If you let the Trust run out of property, it becomes invalid!
  • Property not in your Trust is subject to Probate

What to put into your Revocable Living Trust

  • Your Home and other real estate. At DeWitt Law, we always create a deed to move your home into trust
  • Your Savings Accounts
  • Your CDs
  • Your Checking Accounts
    • Your bank can help make the changes of ownership
  • Non-Retirement investment accounts
  • Stocks
  • Bonds
  • All personal property which is anything but real estate
    • But not cars and boats
    • At DeWitt Law, we move all your personal property to your Trust

When to name your trust as beneficiary

  • I always recommend that your Trust be at least the final beneficiary on your
    • Life Insurance
    • Retirement Accounts (IRAs and 401(k)’s)
  • Any other accounts that need special handling and are subject to IRS rules
  • If you do this, then as a couple you make sure the money flows into the trust and is distributed, especially for minors, as you want