A trust is a legally recognized legal arrangement protecting your creditors and relatives. If you have assets such as savings, real estate, stocks, business interests, and retirement funds, you need to protect them from those who might take advantage of you. A trust is an ideal way to do this. The trustee of the trust is responsible for managing the assets and distributing them as you see fit. You don't have to be an attorney to set up a trust, and you don't have to be a beneficiary to use one. According to Forbes, the following are 9 Assets That Should Be Included In Your Trust:
Protecting Your Loved Ones
A trust can be used to protect your spouse and children from creditors. It can also be used to protect your business from creditors and family members. This is especially important if you have a controlling spouse. If your spouse owns a business or is linked to one that could cause them to file for bankruptcy, it's best to include it in your trust. A trust can protect many assets, but the most important thing is to put your assets into a legal document.
9. Accounts and Securities
Many businesses take advantage of investment opportunities not available to non-business owners. These opportunities can be included in a trust. However, you should be careful about how you choose these investments. Trusts are typically not able to make changes to their investment, and they are also restricted from trading stocks and bonds.
8. Business Intellectual Property
This includes patents and trademarks that are used to protect your brand and products and copyrights that protect your work. However, it should not include a business's assets that have already been used up or made public, such as patents and trademarks. If you own business intellectual property, put it in a trust. This can protect you and your company from lawsuits and creditors. If you want to use this as a reason for trust, it is a good idea. Parents are the most likely to abuse the power of Guardianship or Conservatorship laws.
7. Professional Services
You can include professional services, such as accounting, law, and other services that are used to help run your business. However, it is important to note that these services are typically included in a revocable trust.
6. Retirement Funds
If you plan to retire one day, it's important to protect your retirement funds from creditors and family members. Retirement funds are usually part of a 401(k), 403(b), or pension plan. It's important to know who has access to those funds and who can take them as a gift. If someone has access to your retirement funds, and especially if they have full access, it can be disastrous. A trust can protect your retirement funds from being taken as a gift or obtained by creditors.
Cars are a personal asset, and they should not be included in a business trust. However, you can include cars in a revocable trust. A revocable trust allows the trustee to sell or assign the car, and it also allows the trustee to be sued for any damages that are caused by the car.
4. Stocks and Bonds
Most people don't think about stocks and bonds as assets, but they are just as much part of your personal wealth as real estate or other tangible assets. If you want to protect your stocks and bonds in a trust, they should be included. Trusts can be used to control who gets to sell stocks and bonds or who gets to take them as gifts. You can also name someone as the trustee of your stocks and bonds in your trust. This person can manage them and then sell them when you give them the go-ahead. Trusts can also protect your assets from creditors.
3. Your Life insurance policy
Many people put their life insurance policies in their trust. If a trustee is required, the policy will be transferred to them. You're protecting yourself from potential financial hardship when you include your life insurance policy in your trust. If you aren't sure where to start, we've compiled a list of assets that should be included in your trust. Here are just some of the assets you should consider, including:
- A life insurance policy
- Cash or other liquid assets
- Retirement accounts
- Personal property like artwork or collectibles
2. Artwork and Collections
The artwork you create may be worth a lot of money, especially if it's well-known. Whether you paint, sculpt, or create a new type of art like 3D printing, your creations will always have value. Some artists don't want to sell their work and are fine with donating it to charity. Other artists want the world to see their work and appreciate it. Artwork can also be used as collateral for loans. A lender may agree to give you a loan in exchange for you creating artwork as collateral. This creative work could also become another asset that your trust owns.
1. Real Estate
Many trust documents include real estate as an asset. If you own real estate, it should be included in your trust. A real estate trust is a popular choice for this purpose. It can be used to protect your home and other real estates assets like rental properties and land trusts. A real estate trust can also be used to maintain ownership of the property for future generations.
If you pass away without a will, your children will receive the house, but the trust will own it. That way, your children won't be able to sell the house or give it away to someone else. A piece of property with a single owner, such as a single-family house or a condominium, is usually free of community property laws.
You can include it in your trust. Trust is one way to ensure that your assets are protected from those who might try to take advantage of you. Starting a trust is a complicated and lengthy process. If you want to properly protect your assets, you should speak to an estate planning attorney about the best way for you to go about it. Without proper planning, someone with bad intentions could take advantage of you by accessing your assets without your knowledge or permission.
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Written by Allen Lee
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