“Testamentary Trust” vs. Living Trust
But…Not Every Asset Belongs In Your Living Trust
Maybe: It is true that an asset that has a designated beneficiaries or is jointly owned can avoid probate without being transferred into your living trust. However, it may be subject to the creditors of the joint owner, or who gets it may be inconsistent with your overall estate plan.
Yes: If you own real estate, it is generally prudent to retitle it in the name of your living trust.
Yes: Any real property you own outside the State of Florida should be placed in your trust. If you do not, This also goes for any property you own outside Florida. If you own property out of state, retitle that in the name of your living trust, too: if you skip this step, it will be subject to an ancillary probate in the other state.
No. Qualified plans such as your IRA and 401K should not be placed in your trust. Doing so will produce adverse tax consequences.
Not necessary: Life insurance owned by a decedent normally passes to the named beneficiary, which could be one or more individuals or your trust.
It is important to meet with an attorney to discuss your specific circumstances and goals and review your assets and family situation. The attorneys of The Karp Law Firm can help you figure out whether a living trust is the right tool for you, and advise you as to what assets do and don’t belong in it. Call us for a consultation at 561-625-1100.