Funding Personal Items
Personal property – everything you own without formal titles, such as furniture, appliances, jewelry, collectibles, and clothing – often holds considerable value. Despite this, their inclusion in trust funding processes is frequently overlooked. This simple yet crucial step can bring significant benefits, such as preventing potential disputes among heirs, ensuring your possessions go exactly where you want them to, and even offering potential savings on estate taxes.
The Process of Transferring Personal Property into a Trust
Transferring personal property into a trust involves executing a Bill of Sale, or an “Assignment.” Imagine the typical scenario of a revocable trust: the Bill of Sale is essentially a sales contract between you (the grantor) as an individual and you as the trustee of your own trust. This legal maneuver places your valuable assets securely within your trust, ensuring they’re handled according to your wishes after your lifetime.
When to Use a Specific Bill of Sale
In most cases, a general Bill of Sale is sufficient for transferring property without a title instrument into a trust. However, for more valuable items, a specific Bill of Sale can offer an extra layer of protection. This not only ensures the correct transfer but also helps to prevent any future challenges to the funding.
Distinguishing Between Different Types of Property
Keep in mind that the Bill of Sale is specifically for transferring items that don’t have a formal title. For assets like vehicles, boats, or other property with a title, a different process is required – a topic we’ll cover in depth in future posts.
Brady Cobin Law Group, PLLC: North Carolina’s Trusted Estate Planning Experts
In an ever-changing world with an unpredictable economy, planning for the future isn’t just an option, it’s essential. And it’s never too early to start. At Brady Cobin Law Group, PLLC, we’re here to help you make the most of your financial resources, creating a comprehensive estate plan that safeguards your assets.
Ready to start securing your legacy? We’re here to answer all your estate planning questions and provide personalized consultation. Contact us at (919) 782-3500 or reach us online. Let’s make your future more secure, together.