As you are considering financial planning, it is important to think about the assets you have and how they will be managed. One way to easily do this is by creating a trust that can hold your assets. While there are a number of sources of wealth, a trust should only be used for certain types. Assets that are put into a trust get passed down to a trustee to manage and possibly become the beneficiary of. A California probate attorney can answer your questions as they thoroughly explain how this works regarding estate planning.
What to Include in A Trust?
As stated, there are many types of wealth that a person can have. However, not all are suited to be included in a trust due to the rules of benefactors and how ownership is transferred. The best types of assets to include in a trust are:
-Bank or savings accounts
-Businesses, including partnerships
-Documents that state you are owed money
These are great to include because the rights to each can easily pass down to a beneficiary.
Just as there are assets to include, there are those that should not be included. These assets are:
-Monetary gifts to a minor
-Qualified retirement accounts
-Health and medical savings accounts
A California estate planning attorney can explain how these assets can either be taxed, have the ownership changed, or not benefit the intended party when added to a trust. Though they shouldn’t be added to a trust, there are other ways to list them in an estate plan.
California probate attorneys can help you ensure that you have all of your assets accounted for in your estate plan. Contact the Law Office of Dennis A. Fordham to learn more about this important step in planning for you and your family’s future.