14 Ridgedale Avenue, Suite 254
Cedar Knolls, NJ 07927

Funding a Revocable Living Trust

A living trust is one you create and continue to manage during your life as long you are able. A living trust can be a valuable estate planning tool.

A living trust is just an empty bag until you fill it (i.e. fund it). A living trust needs to be funded.  There are different ways in which to fund a trust.  A trust does not have to hold cash or liquid assets in order to be “funded”.

One way to fund a trust is to change the title on property you already hold to the trust. Rather than hold title to your home in your individual name, you can change the title to the name of your trust, i.e, “the revocable trust of John Smith”. You can also change beneficiary designations on insurance policies to the name of the trust.

A trust can hold property and assets just like an individual can. A trust can buy and sell stocks or bonds through its trustee who acts on behalf of the trust. Usually the grantor is also the trustee of a living trust.

Getting Legal Help

Working as a team with an estate planning attorney you can create plan which preserves assets, minimizes taxes and protects loved ones. Experienced Estate Planning Attorney Elga Goodman can help you understand your options for trust strategies.   Call us today at 973-841-5111.

 

Posted in: Estate Planning, New York Estate Planning