Incorporating New Property Into Your Trust

Establishing a trust is a crucial and efficient part of your estate planning. It's vital to remember that your trust only governs the assets that are actually placed into it. If an asset isn't titled in the trust's name, the trust may not be able to manage or distribute it. When your trust is initially set up, you transfer ownership of your property to the trust's name.

But what should you do when you acquire new property after your trust is established?

It's essential to remember that when you acquire new property after setting up your trust, you should correctly add it to the trust's ownership to bypass the probate process. This can be achieved in several ways, depending on the type of property.

For real estate, the best method is often to take title in the trust's name at the time of purchase. If the property wasn't initially bought in the trust's name and was instead purchased in your name, you can typically transfer it into the trust later by creating and properly recording a new deed. Other assets, like bank accounts, can usually be transferred into the trust's ownership by coordinating with your financial institution.

If you already have a trust, it's prudent to regularly review your assets and ensure that any newly acquired property is correctly titled in the trust's name. Reviewing your estate plan in this manner can help prevent unnecessary complications for you and your family in the future.