What should you not put in a living trust?
What should you not put in a living trust?
Of course, there are some things you should keep even after you've set up a living trust. I'm talking about the stuff that really doesn't need to be in your living trust anyway, like your will and other assets that don't need to go through probate. So what you shouldn't put in a living trust?
Here are a few things your living trust should not include:
- Your will. The living trust is essentially the same thing, but keeps your assets out of probate, which will save your family time and money.
- A list of beneficiaries for all of your bank accounts and other financial accounts. That's what account titles are for. A list like that would just make the document unnecessarily long.
- Copies of all of your important documents. You'll probably have copies of those in other places, too (like at work or with a lawyer). This will make your living trust unnecessarily long, too.
If you're using a living trust to avoid probate, you won’t want to put in it everything that you own. Probate is the court that oversees the process of dividing up your property when you die. Putting things in a living trust is just one way to avoid probate. The right way to use a living trust depends on your situation, and what you put in the trust can have big consequences.
The biggest decision you need to make when deciding what to put in your living trust is whether or not it's better for you to keep certain property in your name alone, or move it into joint ownership with someone else—like a spouse.
Generally speaking, if you have property that would pass outside of probate if you died (such as bank accounts) and you have children from a prior relationship who are beneficiaries of that property, then leaving that property solely in your name might be the best bet, because leaving those assets jointly owned with someone else could be grounds for a stepchild to claim entitlement to them under inheritance laws. If you don't have any children from previous relationships (or other potential heirs), then it may be less risky to leave some assets jointly owned with your spouse or partner.
If you have any questions or in need a Living Trust Attorney, we have the Best Attorneys in Utah. Please call this law firm for free consultation.
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Disclaimer: This is not legal advice and is simply an answer to a question and that if legal advice is sought to contact a licensed attorney in the appropriate jurisdiction.
