Assets to Keep Out of Your Trust | Insights from an Estate Planning Attorney

💡Asset alignment is a crucial step in the estate planning process and involves aligning your assets with your trust.

🏦Bank accounts and brokerage accounts can be put into a trust, but doing so may result in the loss of valuable asset protection.

🚗Putting a car into a trust is generally not recommended, as it offers no significant benefits and may increase potential legal complications.

🏠Real estate, such as a house, should be titled in the name of the trust to ensure a smooth transfer of ownership.

💼Business interests can be transferred to a trust, providing a comprehensive plan for the future of your business.

Should I put my retirement accounts into a trust?

—It is generally not recommended to put retirement accounts, such as IRAs and 401(k)s, into a trust. This can have negative tax consequences and may result in immediate liquidation.

Can I put my car into a trust?

—While it is possible to put a car into a trust, it is generally not recommended. There is no significant benefit to doing so, and it may complicate legal matters in the event of an accident.

What assets should be titled in the name of the trust?

—Assets such as real estate (e.g., houses), bank accounts, and brokerage accounts should be titled in the name of the trust to ensure a smooth transfer of ownership.

Can I transfer my business interests to a trust?

—Yes, business interests can be transferred to a trust, providing a comprehensive plan for the future of your business.

Should I include life insurance in my trust?

—Life insurance policies are typically not included in a trust. Instead, the trust can be designated as a beneficiary to receive the proceeds upon your death.

00:00In this video, estate planning attorney Bill O'Leary discusses the assets that should be kept out of a trust.

01:14Retirement accounts, such as IRAs and 401(k)s, should not be put into a trust due to tax consequences and immediate liquidation.

03:53While it is possible to put a car into a trust, it is generally not recommended as it offers no significant benefits and may complicate legal matters.

05:06Real estate, including houses, should be titled in the name of the trust to ensure a smooth transfer of ownership.

05:47Business interests can be transferred to a trust, providing a comprehensive plan for the future of your business.