Common assets to transfer to Trust include:

• Residence: Done by signing a deed transferring title to the residence to the Trust and recording the deed with the County Recorder’s Office;
• Bank accounts: Done by submitting a Certification of Trust to the bank;
• Brokerage accounts: Done by submitting a Certification of Trust to the brokerage company;
• Limited liability company interests: Done by assigning your LLC interest to the Trust, but only if the Operating Agreement permits it;
• Stock in a closely held business: Done by having stock re-issued in the name of the Trust, but only if the Shareholder’s Agreement permits it; and
• Tangible, personal property (e.g. jewelry, furniture, artwork, antiques, collectibles, etc.): Done by assigning such property to the Trust.

Assets that generally should not be transferred to (re-titled in the name of) the Trust include:

• Qualified retirement accounts (e.g. 401(k)s, IRAs, Roth IRAs);
• Life insurance policies; and
• Jointly owned assets, provided you wish for such assets to pass to the joint owner on death.

What are the reasons to create a Trust?

Avoiding a Probate on your death (as discussed above) is just one reason to create a Trust.  There are at least two (2) other common and important reasons why one may need / want a Trust.  First, if it is important for you to control how and when your beneficiaries (for example, children) inherit your assets on your death.  Common Trust provisions include restrictions on the age at which beneficiaries inherit their share of Trust assets and how those assets can be used until they reach that specified age.  For example, by creating a Trust, you can ensure that until your children reach age 25 (or any other age you may choose), they cannot have direct access to their inheritance; rather, they can only access their inheritance for their health, education and support, as determined by the person you name as their “Trustee”, like a responsible and trustworthy family member or friend.

A second important reason to create a Trust, though less common than the two (2) provided above, is to implement a plan to save on and/or defer estate taxes that may, depending on the size of your estate, be due on your death.   Under current federal estate tax laws, estate taxes are not an issue for the vast majority of us (i.e. persons who have less than $12,060,000) in assets.  But for those who have more than this amount, Trusts provide a way to plan in advance for expected estate taxes.  See Tax Planning page