There are numerous documents to consider when putting together your estate plan. While many people are aware of wills, more people in Ohio should consider the advantages of revocable living trusts. These trusts do not require probate, and they can help people better maintain their privacy.
However, it is not enough to only sign a document stating you have a revocable living trust. You also need to fund the trust. There are several ways you can go about accomplishing this.
1. Transfer business interests
In the event you hold any interest in an LLC or partnership, you can retitle those funds into the name of your trust. To learn how to do this, you will need to check the articles of incorporation, LLC operating agreement or partnership agreement. These documents will detail how to transfer interests and whether there are any restrictions.
2. Transfer real estate
You will need a deed to transfer real estate you own. You will need to follow provisions set forth by the state of Ohio to accomplish this. You may have to acquire permission from a homeowners association or from a lender if you have a mortgage on your home. There will be some fees and a transfer tax associated with this. However, there may be ways to circumvent the property tax.
3. Transfer your bank account
Get in touch with your bank to learn how your money market, checking and savings account can go into your trust. In some cases, you need to close the account entirely. There are occasionally penalties for early withdrawals, so make sure you understand what fees you will get for specific actions.
4. Alter life insurance beneficiaries
Many people prefer making the owner or beneficiary of a life insurance plan the trust. When the trust is the owner, the trustee is capable of managing your life insurance policy in the event you become mentally incapacitated.