Revocable Trust Guidance In Helotes, TX
At Bineham & Gillen, we understand that a revocable trust is a helpful, powerful tool for managing an estate. However, it’s crucial to understand which assets should and shouldn’t be included in your legal trust. We go into detail about elements that shouldn’t be included, specifically:
- Retirement accounts
- Policies for life insurance
- Vehicles
- Items with minimal value
- Jointly-owned homes and real estate
Our estate planning attorneys have credible experience in writing comprehensive wills and trusts. Find peace of mind when you select us for estate planning in Helotes, TX, and the greater San Antonio area.
What Is The Purpose Of A Revocable Trust?
A revocable living trust is a legally recognized document that allows you to transfer asset ownership into a trust while maintaining control over them throughout your lifetime. The trust becomes effective immediately and can be changed or revoked at any time.
A revocable trust helps your estate avoid the probate process, making asset distribution faster and more private after your passing.
Assets That Should Not Be Placed In Revocable Trusts
While revocable trusts are useful for many assets, not all assets are suited for inclusion. Let’s explore which types of assets should generally be kept outside of your revocable trust.
1. Retirement Accounts
Retirement accounts such as IRAs, 401(k)s and other retirement savings plans should not be placed in a revocable trust. These accounts are governed by specific rules regarding beneficiary designations. Transferring them to a trust could lead to tax consequences or interfere with these designations.
Instead, you should list a beneficiary directly on the account so it passes outside of probate, as intended. After your death, the beneficiary will inherit the retirement account without the need for probate proceedings.
2. Life Insurance Policies
Life insurance policies can be placed in revocable trusts, but we generally don’t recommend doing so. Just like retirement accounts, life insurance policies have their own beneficiary designations. Placing them in a trust may inadvertently cause complications, such as triggering unnecessary estate taxes.
3. Automobiles And Motor Vehicles
In general, we don’t recommend including vehicles, such as cars, trucks and motorcycles in this type of trust. Transferring a vehicle can create unnecessary paperwork, such as title changes and registration updates. This process can be time-consuming and potentially result in unintended legal consequences.
4. Personal Property Of Minimal Value
For assets of minimal value, like certain personal items (clothing, furniture, etc.), placing them in a revocable trust might not be necessary. Instead, you can list specific instructions for the distribution of these assets in a letter of instruction or in your will.
Including items of minor value in the trust can complicate the administration of your estate without offering substantial benefits. It’s best to keep the focus on more significant assets.
5. Property In Joint Tenancy
If you own property with someone else in joint tenancy — such as a jointly owned home or other real estate — the property automatically passes to the surviving owner(s) upon your death. There’s no need to place this property into a revocable trust, as it will pass directly to the co-owner(s).
How To Fund A Revocable Trust
It’s important to remember that simply creating a trust is not enough. You must actively fund the trust by transferring ownership of your assets into it. This includes changing the titles of your real estate, bank accounts and other significant assets to reflect the trust’s ownership.
We recommend working with an experienced estate planning attorney to ensure all the appropriate assets are properly transferred into the trust. Bineham & Gillen provides trusted legal guidance to help you avoid complications down the road.
Where Can I Get A Revocable Living Trust?
A revocable living trust can be prepared by an experienced estate planning attorney who specializes in family law and trusts, like Bineham & Gillen. Consulting with our attorneys ensures that the trust is properly tailored to your assets and beneficiaries, providing peace of mind for the future.
Protect Your Estate With The Right Trust Decisions
Bineham & Gillen is here to help you make informed decisions about your estate plan. We ensure your estate planning decisions align with your goals. We’re here to guide you through every step of the process and ensure your family’s future is protected. Contact us today for legal guidance in Helotes, TX.
