We got you sorted in this article if you are looking for how to add a bank account to a living trust.
You’ll also learn what property to put in a Living Trust and about living trust.
About Living Trust
A living trust is a legal structure set up by a person (the grantor) while they are still alive to protect their assets and decide how they will be shared out after they die.
The trust is called “living” because the grantor sets it up while they are still alive.
It is a tool for planning an estate that can help family members and beneficiaries avoid probate, which can take a long time, be public, be hard to understand, and often cost a lot of money.
People who want to set up a living trust usually talk to estate planning experts to ensure it is set up correctly.
This is because living trusts are important and can be hard to understand.
After making a living trust, the grantor will decide which assets should be in the trust and then give ownership of those assets to the trust.
Trustees are in charge of making sure that living trusts are run properly. Most of the time, trustees have a fiduciary duty to manage the trust in a way that is good for the beneficiaries.
When a living trust is set up, the grantor’s job is to name the people who will benefit from it.
How To Add A Bank Account To A Living Trust
It is easy to understand how to add a bank account to a living trust.
Read through to learn everything you need to know.
Each financial institution has its own rules about how to add your bank accounts to a living trust.
This step-by-step process can be very easy or have a lot of steps.
It depends on the rules of the bank or credit union you use.
As soon as you decide to start the process, you should talk to your bank so they can tell you what you need to do.
If you want the name on your account to be changed to the name of your trust, you might need to write a Letter of Instruction.
Add your Social Security number, the name of your trust, your mailing address, your phone number, and your email address. You should also write down the number of your bank account.
You should give your Letter of Instruction to your bank, financial adviser, or attorney, along with your Trust agreement.
If you can’t bring the items to your bank in person, you might want to mail them to the branch where you first opened your bank account.
Your bank will send you all the forms you need, which you will need to fill out and send back.
This could include forms for new accounts, signature cards, affidavits from trustees, and the certificate of trust.
What Property to Put in a Living Trust?
You want to set up a revocable living trust so you don’t have to pay probate fees.
In general, the costs of probating an estate will go up in line with the value of the items.
For this, it is strongly suggested that you put your most valuable assets in the trust. Think about adding the following:
- Homes and other types of real estate
- Stock, bond, and other types of investment accounts held by brokerages
- Works of art, furniture, or antiques that are worth a lot of money
- Valuable collections of stamps, coins, or other items
- Precious metals.
You can add a new property to your revocable living trust anytime.
Since you will also be the trustee, you will always be able to sell or give away any property in the trust.
You could also take the property out of the living trust and put it back under your name.
There are ways besides setting up a living trust to cut the cost of probate.
You might want to use different ways to avoid probate for some of your assets instead of going through the probate process.
Even if some of the estate’s properties need to go through the standard probate process, the costs will be very low because attorney and appraisal fees are usually close to the value of the property being probated.
We have covered all you need to know on how to add a bank account to a living trust, about a living trust, and about properties, you can add to a living trust.