The type of trust that you create may determine when to transfer property or funds to it. Forbes notes that with a living or revocable trust, you may add assets whenever you wish. During your own lifetime, for example, you may add and sell property held in the trust to provide income for beneficiaries.
After death, however, a living trust becomes irrevocable. Its contents generally may not change. If you plan to add a property to a trust after death, you may create a pour-over will. With a will, the probate court may transfer any of your listed assets to a trust after your death.
Which assets could I add to a living trust before death?
With some planning, you may add a property to your trust to help your heirs avoid California’s lengthy probate procedure. Kiplinger’s Personal Finance reports that adding your most important assets to a living trust may bypass probate.
Many individuals transfer businesses and real estate to a living trust. You may wish to add land, homes or rental properties. Adding your stocks, bonds and financial accounts may help heirs avoid probate. Trusts may also hold your personal property such as collectible cars, jewelry and artwork.
Which assets may a trust receive after my death?
Some individuals fund their trusts with money through life insurance policies. With certain policies, you may choose to list your trust as a beneficiary to receive its proceeds after your death. You may also name your trust as a beneficiary to your retirement accounts such as a 401(k). After death, the funds may transfer to your trust.
The creation of a trust requires thoughtful preparation regarding which assets to add while alive. If you wish for a trust to receive certain property after your death, you may include instructions in a will.