When you signed your Revocable Living Trust, your estate planning attorney likely included a detailed list of instructions on transferring ownership of certain assets to the Trust. At the top of the list were things like bank accounts, safe deposit boxes, bonds, stock certificates, and your vehicles — basically, everything you discussed that needed to be included when initially funding your Trust. But you are still new to this process and cannot help but wonder what you should not put in your Trust.

This is an excellent question because many people new to estate planning assume they need to toss everything under the Trust umbrella. The reality is that while your Trust is designed to hold various assets, it is not a catch-all. 

What SHOULD You Put in Your Trust?

A Revocable Living Trust is extremely beneficial because it allows you, as the trustee, to continue managing all your affairs and assets while you are still alive. If you pass away or become incapacitated, a successor trustee steps in for you and sees to it that your wishes are carried out — all without the need to go to court. 

Everyone’s estate planning situation is different. That said, assets you typically want in your Trust include the following:

• Bank and financial accounts
• Real estate
• Personal property
• Stocks, bonds, and other investments
• Mineral rights
• Safe deposit boxes
• Business interests 
• Life insurance
• Vehicles
• Valuable personal property (jewelry, art, collectibles, etc.)

What You SHOULD NOT Put in Your Trust

As previously mentioned, your Revocable Living Trust is not designed to be a catch-all regarding the assets you own. Several assets and financial accounts generally do not need to be in there. This includes:

• IRAs and other tax-deferred retirement accounts (These should be covered by a Retirement Plan Trust)
• Annuities
• Health savings accounts
• UGMA/UTMA accounts for your children

The bottom line is that you should place your important assets in your Revocable Living Trust as soon as you sign the paperwork. This way, everything is protected, you have instant peace of mind that everything will be passed on to the beneficiaries you designate, and your family will not have to go through a lengthy and costly legal process. What those important assets look like for you  — and what should and should not be placed in the name of the Trust — should be discussed with your estate planning attorney. 

Call Leigh Hilton PLLC Today!!

Call Leigh Hilton PLLC in Denton, and we will help determine the right course of action for your unique estate planning needs. We have ample experience using a variety of legal instruments and will take into consideration your particular situation. Proper planning of an estate, whether through a Will, Trust, or both, helps ensure your wishes are honored.