Did you know that once your living trust is written, the most important work is yet to be done? The next step is called “trust funding.” Trust funding includes creating a new deed for your real estate so that the owner of the real estate is your trust, and changing the titles of your bank and brokerage accounts so that they are in the name of the trust. If these steps are not taken both when you create the trust and when you purchase any new assets, your trust planning be defective and your estate may need to go through the probate court at the time of your passing. When you create a living trust with Lake Oswego Elder law, we will make sure your assets are correctly titled to avoid probate.
One major exception is retirement accounts. The majority of Individual Retirement Account and Tax Sheltered Annuity policies require that those accounts be held in the name of the individual, not the trust. Otherwise, the significant income tax benefits to holding those types of accounts could be lost.