Trust-pack

[jazz4cash]

I went to two different RLT seminars and one area that was confusing to me is what assets to put into the trust and which ones to leave out. Naturally real property goes in but my understanding was that financial accounts, life insurance, etc. (e.g. anything that has a named beneficiary) could be left out of the trust unless the grantor has a specific reason to include the asset in the trust. The lawyer's attitude seemed to be that once you set up the trust, you should put EVERYTHING in there.

[CaliKid]

Quote:

Originally Posted by jazz4cash I went to two different RLT seminars and one area that was confusing to me is what assets to put into the trust and which ones to leave out. Naturally real property goes in but my understanding was that financial accounts, life insurance, etc. (e.g. anything that has a named beneficiary) could be left out of the trust unless the grantor has a specific reason to include the asset in the trust. The lawyer's attitude seemed to be that once you set up the trust, you should put EVERYTHING in there.

To my knowledge you put into trust most assets. For sure real estate, stocks, banks, business interests. Some also put in intellectual property like patents. Some put in cars, rvs, boats. The beneficiary for life insurance should be the trust and some change the owner to the trust too (good if there is cash value). The loaded question is who the beneficiary should be for 401ks, IRAs, etc.... Generally the trust should not be the bene of those unless the benes of the trust are minors or not sophisticated people.

[Spock]

Quote:

Originally Posted by CaliKid To my knowledge you put into trust most assets. For sure real estate, stocks, banks, business interests. Some also put in intellectual property like patents. Some put in cars, rvs, boats. The beneficiary for life insurance should be the trust and some change the owner to the trust too (good if there is cash value). The loaded question is who the beneficiary should be for 401ks, IRAs, etc.... Generally the trust should not be the bene of those unless the benes of the trust are minors or not sophisticated people.

Pending new legislation, IRAs beneficiaries should be humans and not trusts unless it is a "see through" trust. I've read revocable trusts are not see-through. Humans can RMD based on the beneficiaries age (for now). Trusts have to RMD over 5-10 years.

[I am He]

In WI, you can add POD to real estate although that probably works best if it's to a single person (not multiple kids for instance as that gets hairy with disposal). Call your register of deeds.