A trust is a legal document that allows you to control your assets in Maryland after you die. This can be a great way to ensure that your loved ones inherit your property and money smoothly and timely. But what assets should be included in your trust? Keep reading to find out more.
Real estate
One of the most important assets to consider during estate planning is your real estate. This can be your primary residence, a vacation home, or any other investment property. During the transfer, you will need to change the deed to reflect the new ownership by the trust. Additionally, you must complete your mortgage payments; otherwise, the lender could foreclose on your property after your death.
Financial accounts
You can also transfer your financial accounts like your savings accounts, checking accounts, and investment accounts into a trust. You will do this by filling out a form at your bank or investment firm transferring ownership into the trust. You will also need to name a beneficiary for each account.
It is important to note that if you have a joint account with someone else, the money in that account will automatically pass to the other person when you die. Thus, you do not need to include joint accounts in your trust unless you want to specify how the money should be divided among multiple beneficiaries.
Life insurance
If you want to protect your insurance policy from creditors and help your loved ones avoid probate, naming the trust as the policy’s beneficiary can be a good idea. But this can come with some risks. For example, as the trustee of your life insurance, the IRS will consider the policy your property and tax it if it reaches their threshold for taxable estates.
These are just a few of the assets you can include in a trust. Be sure to consider your overall financial picture and how you want your assets to be distributed after your death when creating any type of trust.