Assets to Put in a Revocable Living Trust in New York

At Morgan Legal Group, located in New York City, we specialize in estate planning, probate, guardianship, elder law, wills, and trusts. A revocable living trust is a powerful estate planning tool that provides numerous benefits, including avoiding probate, maintaining privacy, and allowing for seamless management of your assets. Understanding which assets to place in your revocable living trust is crucial for maximizing these benefits. This guide will explore the types of assets that can and should be placed in a revocable living trust under New York State law.

What is a Revocable Living Trust?

A revocable living trust is a legal entity created during your lifetime that holds ownership of your assets. As the grantor, you can modify or revoke the trust at any time. You also serve as the trustee, managing the trust assets during your lifetime, with a successor trustee taking over upon your incapacity or death.

Benefits of a Revocable Living Trust

Placing assets in a revocable living trust offers several advantages:

• Avoiding Probate: Assets in the trust bypass the probate process, allowing for quicker and more private distribution to beneficiaries.
• Maintaining Control: You retain control over the trust assets during your lifetime and can make changes as needed.
• Managing Incapacity: If you become incapacitated, the successor trustee can manage the trust assets without court intervention.
• Privacy: Unlike a will, a trust is not a public document, so the details of your estate remain private.

Assets to Place in a Revocable Living Trust

Not all assets should or need to be placed in a revocable living trust. Below are common types of assets that are well-suited for inclusion in your trust.

Real Estate

Real estate is one of the most important assets to place in a revocable living trust. This includes your primary residence, vacation homes, rental properties, and undeveloped land. By transferring real estate into the trust, you can avoid probate and ensure a smooth transition of ownership.

• Primary Residence: Your main home should be placed in the trust to avoid probate and simplify the transfer process.
• Vacation Homes: Placing vacation properties in the trust ensures they are managed and distributed according to your wishes.
• Rental Properties: Including rental properties in the trust allows for continuous management and income generation by the trustee.
• Undeveloped Land: Any land you own should be placed in the trust to avoid probate complications.

Financial Accounts

Many types of financial accounts can and should be placed in your revocable living trust, including:

• Bank Accounts: Checking, savings, and money market accounts can be transferred to the trust to avoid probate.
• Investment Accounts: Non-retirement investment accounts, such as brokerage accounts, should be included in the trust for seamless management and transfer.
• Certificates of Deposit (CDs): CDs can also be transferred to the trust to ensure they are managed according to your estate plan.

Business Interests

If you own a business, placing your business interests in a revocable living trust can help ensure a smooth transition and continuity in the event of your incapacity or death.

• Small Businesses: Transferring your ownership interest in a small business to the trust helps manage succession planning and avoids probate.
• Partnership Interests: Placing partnership interests in the trust ensures that your share of the business is handled according to your wishes.
• Corporate Stock: If you own shares in a closely-held corporation, these can be transferred to the trust for seamless estate planning.

Personal Property

Personal property of significant value can also be included in your revocable living trust:

• Valuables: Items such as jewelry, art, antiques, and collectibles should be included to ensure they are distributed according to your wishes.
• Vehicles: Cars, boats, and other vehicles can be placed in the trust to avoid probate and simplify transfer of ownership.
• Intellectual Property: Copyrights, patents, and trademarks can be transferred to the trust to ensure proper management and distribution.

Assets Not Typically Placed in a Revocable Living Trust

While many assets are well-suited for inclusion in a revocable living trust, some assets are generally not placed in the trust:

Retirement Accounts

Retirement accounts such as IRAs, 401(k)s, and pensions should not be transferred directly into the trust. Instead, you can name the trust as the beneficiary to ensure the assets are managed according to your estate plan.

Life Insurance Policies

Life insurance policies are typically not placed in a revocable living trust. Instead, you can name the trust as the beneficiary of the policy, ensuring that the proceeds are managed and distributed according to your wishes.

Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs)

These accounts are not typically placed in a revocable living trust due to tax implications and restrictions. Instead, ensure you have designated beneficiaries for these accounts.

How to Transfer Assets into a Revocable Living Trust

Transferring assets into a revocable living trust involves changing the title of the asset from your name to the name of the trust. Here are the steps to transfer common types of assets:

Real Estate

To transfer real estate, you will need to execute a new deed transferring ownership from yourself to the trustee of your trust. This deed must be recorded with the appropriate county office.

Financial Accounts

For bank and investment accounts, you will need to contact your financial institution to update the account ownership to the name of the trust. This often involves filling out specific forms provided by the institution.

Business Interests

Transferring business interests may require updating your business’s operating agreement or other governing documents to reflect the trust as the new owner. Consult with an attorney to ensure compliance with all legal requirements.

Personal Property

For valuable personal property, you may need to create a document listing the items and stating that they are now owned by the trust. For vehicles, you will need to update the title with the Department of Motor Vehicles.

How Morgan Legal Group Can Help

At Morgan Legal Group, we provide expert guidance and comprehensive estate planning services tailored to your unique needs. Our experienced attorneys can help you determine which assets to place in your revocable living trust and assist with the transfer process, ensuring your estate plan is properly implemented under New York State law.

Expert Guidance

Our team of experienced attorneys has a deep understanding of New York State estate planning laws and a proven track record of success. We provide expert guidance to help you navigate the complexities of estate planning and make informed decisions.

Personalized Service

We take the time to understand your goals and develop a customized estate plan that meets your needs. Our personalized approach ensures that your plan reflects your wishes and protects your interests.

Comprehensive Legal Solutions

From drafting wills and trusts to managing probate and guardianship matters, we offer a wide range of services to address all aspects of estate planning. Our goal is to provide you with a seamless and stress-free experience.

Contact Us

If you are in need of estate planning services, contact Morgan Legal Group today. Our experienced attorneys are here to provide you with the expert legal assistance you need. Schedule a consultation with us and take the first step towards securing your future and protecting your loved ones under New York State law.