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Adding specific assets to a trust can help benefit your heirs

On Behalf of | Apr 7, 2022 | Uncategorized

If you reside in California and want your assets to pass to the next generation smoothly, using a trust can be highly beneficial. One of the top advantages is the ability for the assets you place in a trust to avoid probate and expensive estate taxes. However, it’s essential to understand the types of assets you can include when using this tool. The following examples are assets you may want to have in your trust:

Real estate

Adding real estate to a trust can be a good idea as this asset is typically one of your most significant. Doing so helps your beneficiaries in dealing with this asset and probate proceedings. If you own a home or commercial property, adding it to a trust may be beneficial.

Financial accounts

Another asset that can be advantageous to add to a trust includes individual financial accounts. These might consist of bonds, stock certificates, annuities, and the following:

– Non-retirement mutual fund accounts
– Non-retirement brokerage accounts
– CDs
– Saving and checking accounts
– Money market accounts
– Cash accounts

Valuable personal property

If you own valuable personal property that you want to pass on to your heirs, placing it in a trust can be advantageous. Tangible personal property that you may want to put in a trust can include the following:

– Collectibles
– Jewelry
– Art
– Furniture

Business interests

Adding a business to a trust may also be advisable. This action can help reduce the tax burden and your family’s burden of carrying business debts. If you own a small business as a sole proprietor, transferring your business interests to a trust can help avoid having to operate your business under court supervision.

Careful consideration should be taken whenever you choose to add assets to a trust. While you will no longer be vulnerable to an estate tax, you are forfeiting ownership of these assets.


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