Many adults do not want to make mistakes, especially when it comes to their legacy. They want to ensure that every aspect of their estate plans is perfectly executed. Unfortunately, many planners forget one major aspect of building an estate, the funding.
According to Kiplinger, some Americans start the process to set up a trust and receive incorrect information about funding and designating instructions for that trust. However, you may avoid critical funding mistakes by transferring property to that trust through the designation of a beneficiary.
Tips for transferring property
To reassure the property is in the correct trust, there are a few simple steps to check:
- Review all deeds to your properties – It’s critical to confirm that all your assets are in the name of your trust. There are many situations where a lender or the bank removes the trust by accident. But you need to have the trust’s name on your assets for the best processing.
- Analyze your financial statements – Gather together all your statements from investments, retirement accounts and other accounts to make sure that your trust is listed as the owner. You can also confirm this by contacting your bank directly.
- Examine your life insurance policies – Most policies require a primary beneficiary for the setup process. And if you have a trust, it’s helpful to name the trust as your primary beneficiary for the policy. You can also list it as a contingent beneficiary if you have a spouse or life partner.
Taking additional time to review these accounts and assets allows you to avoid the funding mistake and ensure a better plan for your legacy. And it may save time and energy for your family members.