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Funding your revocable trust is just as important as creating it. However, many people don’t know what funding a trust means. Funding a trust is accomplished by retitling assets into the trust’s name rather than your own. Incorrectly funding a trust can become very problematic.
Consequences of not re-titling assets:
There are a variety of reasons why we require and help our clients retitle their assets into the trust’s name. Here are three reasons that you should retitle your assets:
1. Your assets may be subject to probate if they are not retitled. Probate is the legal process by which assets are distributed after death. It is best to avoid probate because it can be time consuming and expensive. And if your assets are owned by your trust and not you, they do not need to go through this process in order to be dispersed.
2. It makes the administration much simpler. When assets are already “owned” by the trust by retitling, there is less room for confusion about asset ownership and distribution.
3. Retitling can help protect your assets from lawsuits, creditors, and people you may wish to keep away from your assets. The whole point of creating a trust is to make a plan for how your belongings will be handled. But, if they are not correctly titled in the name of the trust, the plan you so carefully created flies straight out the window.
What assets need to be retitled:
A revocable living trust protects your assets and determines who your assets will go to once disbursements are made. To begin creating a revocable living trust, think about what assets you have and who you want to leave them to. As we’ve said, retitling your is a crucial step in creating a trust because it effectively transfers ownership of the asset to the trust. Titling, as a legal term, identifies who owns an asset. When it comes time to disburse the trust’s assets the trust has the power to give out the assets it “owns.”
Certain assets must be retitled in order to pass out of your possession and into your trust. These include:
Bank accounts
Retirement accounts
Life insurance
Health insurance
Investment accounts
Real estate
Vehicles
We would be happy to help you determine if your assets need to be retitled, because chances are, they do.
How to retitle assets:
Funding a revocable living trust involves transferring assets from the trustor, or the creator of the trust’s individual name to the name of the trust. This means literally changing the names on your assets from your name into the name of the trust.
Retitling assets is a straightforward process. However, it does differ from asset to asset.
For real estate, retitling involves a deed. For example, if you own a home, the home is currently deeded in your name, even if there is a valid mortgage. In order to change the title of your house, deed it from yourself and into the trust. This can be achieved through a Warranty Deed or a Quitclaim Deed. The deed must then be signed, notarized, and recorded in the county where you live.
To retitle a bank/ retirement/ investment/ insurance account, simply contact the bank or institution that holds the asset and request a change in ownership from your name to the trust’s name. You can also request that the Trust be designated as the account’s pay on death beneficiary if you would like to retain ownership of said account while you are still living. We should note that the institution that manages your asset may require documentation stating that you are trustee of the trust.
Correctly funding your revocable living trust by retitling your assets is the only way to ensure that you are correctly passing ownership and into the ownership of your trust. We want to help you understand how best to protect your assets for smooth and effective administration. Reach out to our team today at 385.334.4030 or email@skvlegal.com.
Dear Friends, In the dynamic tapestry of life, small businesses are the threads that weave communities together. As an elder law and estate planning attorney at Bellomo & Associates, Ive had the privilege of assisting individuals and families in preserving their legacies. Today, I want to address a group close to my heart small business owners. Small businesses arent just economic entities; they are the heartbeat of our communities. Your dedication, hard work, and entrepreneurial spirit contribute not only to your familys well-being but also to the vitality of the neighborhoods we call home. For many small business owners, the line between personal and professional life is beautifully blurred. Your legacy isnt just about the products or services you offer; its about the dreams youve nurtured and the impact youve had on those around you. As we embark on the journey of estate planning, its crucial to recognize the interwoven nature of business and family. One common oversight is neglecting the unique considerations that come with passing down a business. Whether youre a seasoned entrepreneur or just starting your venture, a well-crafted estate plan ensures the seamless transition of your business to the next generation, preserving not only its financial value but also the essence of your hard work and dedication. Succession planning is a vital aspect of estate planning for small business owners. Its about cultivating the seeds of your success and ensuring that the business youve built with passion continues to thrive. By thoughtfully designating successors and outlining a clear plan, you pave the way for a smooth transition, minimizing disruptions and securing the future of your enterprise. Your business is more than a source of income; its a foundation that supports your familys dreams and aspirations. Estate planning goes beyond business assets; it safeguards the well-being of your loved ones, providing a roadmap for their financial security and peace of mind. To my fellow small business owners, I extend an invitation to join us at our upcoming estate planning workshop. Its a space where we delve into the unique considerations of business-centric estate planning and connect with like-minded individuals facing similar challenges. Bring your questions, share your experiences, and lets work together to ensure your legacy is as resilient as your entrepreneurial spirit. Estate planning is not just a legal process; its a commitment to nurturing what matters most. I look forward to meeting you and exploring the important next steps in securing both your business and family legacies. To a future of continued success and lasting impact, Jeff Bellomo
Greetings, I trust this message finds you in good health and high spirits. In my years as an elder law and estate planning attorney here at Bellomo & Associates, Ive had the privilege of guiding families through the intricacies of planning for the future. Today, I want to share some insights on common estate planning mistakes, drawing from the experiences of those Ive had the honor of assisting. Its human nature to postpone tasks, especially those that involve contemplating the future. However, delaying your estate planning can have significant consequences. Whether youre an income-generating couple, a seasoned individual considering nursing home care, or a young family with dreams to protect, procrastination can rob you of the peace of mind that comes with a well-thought-out plan. No two families are the same, and neither should their estate plans be. Cookie-cutter approaches often neglect the nuances that make your situation unique. As your trusted advisor, I emphasize the importance of personalized solutions. Your plan should reflect your values, aspirations, and the legacy you wish to leave behind. Life is dynamic, and so are your circumstances. Marriage, births, career shifts, and even unexpected health challenges can reshape your priorities. Failing to update your estate plan accordingly can lead to unintended consequences. Regular reviews ensure that your plan remains a true reflection of your current life stage and desires. Discussing end-of-life matters can be uncomfortable, but its a crucial step in ensuring your wishes are understood and respected. Communicating openly with your loved ones about your estate plan can prevent misunderstandings and provide clarity during challenging times. In the age of online resources, its tempting to try a do-it-yourself approach to estate planning. However, the potential pitfalls of DIY plans can far outweigh the perceived cost savings. Professional guidance ensures that your plan complies with legal requirements and considers intricate details that may be overlooked. To those of you who resonate with these considerations, I extend an invitation to join us at our next estate planning workshop. Its not just an opportunity to learn about common mistakes but also a chance to connect with others who share similar concerns. Bring your questions, share your stories, and lets navigate the path to a secure future together. Remember, estate planning is not just a legal process; its a journey toward safeguarding what matters most to you. I look forward to meeting you and exploring the important next steps in creating a plan that reflects your unique legacy. To a future of informed decisions and lasting legacies, Jeff BellomoWe offer FREE WORKSHOPS every week! Click here to register!
Im Jeff Bellomo, an elder law and estate planning attorney at Bellomo & Associates in York and Lancaster, PA. Today, were going to embark on a journey together, one that demystifies the process of probate. Its a topic that touches the lives of many. Lets delve into Understanding Probate: A Step-by-Step Guide. The Path Begins with a LossProbate is often viewed as a complex legal process. But its crucial to remember that its not just about legalese and paperwork. Its a path that often begins with the loss of a loved one, a time when emotions run deep, and the need for support is essential. When someone passes away, the first step is to open an estate. This is done by filing a petition with the appropriate court, and this court will oversee the administration of the estate. During this time, the court will appoint an executor or personal representative, who plays a critical role in managing the deceased persons affairs. Inventory and Appraisal: Preserving Your LegacyThe next step is inventory and appraisal, a process of cataloging and valuing the assets within the estate. This may include real estate, financial assets, personal property, and more. Its not just about numbers on a page; its about preserving your loved ones legacy. Heres where it gets a bit emotional. Memories are often tightly connected to these assets. It can be challenging to go through this step, but its essential for ensuring a fair distribution of the estate and honoring your loved ones wishes. Notification and Payment of DebtsOne of the next steps involves notifying creditors of the deceased persons passing and paying off debts. This part can feel like navigating uncharted waters, especially when emotions are still raw. Its essential to ensure that all debts are resolved before the remaining assets are distributed to heirs. The Final Stage: Distribution to HeirsThe final step is the distribution of the remaining assets to heirs or beneficiaries. This is where the fruits of your loved ones lifes work are passed on to the next generation. Its a time to honor their memory and to provide for the financial well-being of those left behind. The Heart of ProbateProbate, though often seen as a legal process, is, at its core, a journey of the heart. Its about closure, healing, and ensuring that your loved ones wishes are carried out. Here at Bellomo & Associates, we understand that the emotional aspect of probate can be overwhelming, especially when coupled with the legal intricacies. Thats why were here to guide you through every step of the way, providing the support and expertise needed to navigate this journey with confidence. Join Us at Our Estate Planning WorkshopIf youd like to learn more about probate and other critical aspects of estate planning, I invite you to join us at our next estate planning workshop. Its a place where you can connect with other like-minded individuals and ask questions. Its about taking those important next steps in creating a comprehensive estate plan. Remember, youre not alone on this path. Were here to support you, connect with your emotions, and guide you toward securing your familys future.
Welcome to Lear & Lear. Lear & Lear offers comprehensive estate planning services designed to cater to various needs and circumstances, ensuring that clients are well-prepared for their futures. Our services span from creating Wills and trusts, updating existing estate plans, drafting Powers of Attorney and Healthcare Directives, creating guardianships and conservatorships, and to navigating the complexities of probate. Estate Planning Services:- Lear & Lear emphasizes the importance of creating a tailored estate plan that may include Wills, Trusts (living, testamentary, revocable, irrevocable, funded, or unfunded), and other estate planning tools. Our approach is to provide peace of mind by ensuring smooth transitions during times of bereavement and incapacity, as well as safeguarding your wishes and assets for the future. Powers of Attorney and Healthcare Directives:- Recognizing the critical role of Powers of Attorney and Healthcare Directives, Lear & Lear assists clients in designating trusted individuals to manage financial and healthcare decisions. These documents are essential for ensuring that your preferences are honored in cases of incapacity, providing a layer of protection, and avoiding unnecessary legal complications. Basic Estate Plan Components:- A typical estate plan outlined by Lear & Lear may include a Will, Trust, General Assignment of Assets, Financial Power of Attorney, and an Advance Health Care Directive. Each component plays a crucial role in ensuring your assets are managed according to your wishes, providing comprehensive coverage from asset protection to healthcare decisions. Real Estate and Probate Avoidance:- Our firm also addresses the intricacies of real estate within estate planning, offering guidance on ownership types like Joint Tenancy and Tenancy in Common, and strategies such as Life Estates and Transfer on Death Deeds to bypass probate and ensure direct transfer of property to beneficiaries. This service is particularly valuable for clients looking to streamline the transfer of valuable real estate assets. Probate and Estate Planning Connection:- Our firm has a clear understanding of the complexities of probate, differentiating between formal and informal probate and the impact of having a Will or Trust on the probate process. Our expertise extends to facilitating a smoother process or avoiding probate altogether through strategic estate planning, thus saving time, reducing legal fees, and preventing disputes among beneficiaries. Role of Probate Attorneys:- For clients navigating the probate process, Lear & Lear outlines the importance of having a skilled probate attorney. We offer comprehensive support as probate attorneys, from valuing assets and filing court documents to managing estate taxes and settling disputes. Our emphasis on empathetic, expert guidance reflects our strong commitment to making the probate process as stress-free as possible for you. For individuals or families looking to secure their future and ensure their wishes are respected, Lear & Lear offers a robust and empathetic approach to estate planning and probate. Our services have been designed to address the legal, financial, and personal aspects of estate planning, ensuring clients receive personalized advice and support tailored to their unique circumstances. Our team of attorneys is here to help you make the best possible decisions for you and your loved ones. Reach out to us today by phone at (385) 334-4030, or by email at katie@skvlegal.com.