What kind of assets do most people put in an irrevocable living trust?
What kind of assets do most people put in an irrevocable living trust?
When you set up an irrevocable living trust, you transfer all of your assets into a single legal entity that is controlled by a trustee who will manage them on your behalf. This can be done to ensure that those assets get transferred to the people you have named as beneficiaries once you die so that you don't have to worry about it.
Pour-over provisions
But when you set up an irrevocable living trust, there are some things that most people add to it. These are called "pour-over" provisions, and they ensure that all of your assets will pass through the trust once you're gone.
Outside of the state
You might be thinking, "Well, why wouldn't I want my assets to go through my living trust?" The reason is that there are some things for which it's better not to use a living trust. For example, if you own a house outside of the state in which you live—or even just own stock in a company located outside of the state—the laws of those states and their distance from yours may present complications that are best avoided.
Setting up an irrevocable trust
When people make the decision to set up an irrevocable trust, they often have a specific goal in mind. Whether it's to avoid probate or pass on assets to their heirs, they want to make sure that the structure of their wealth is just right. But some people who have an irrevocable living trust set up their assets in one of the following ways:
-They don't set up a trust at all; instead, they keep their assets in a will
-They set up a revocable living trust but create a will anyway as well
-They use an asset protection trust as well as an irrevocable trust
-They divide their assets between an irrevocable trust and life insurance
Dividing their assets
Many people who have set up an irrevocable living trust choose to divide their assets among different beneficiaries. It's one of the easiest and most common ways to do it. You can also leave your assets to a specific group of people, like your children or your siblings. And you can leave assets to different groups of people as well, for example, your spouse and children.
If you have questions, you can get a free consultation with the Best Estate Lawyers.
Parklin Law - Estate Planning Lawyer
5772 W 8030 S, # N206
West Jordan UT 84081
(801) 618-0699
