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Transferring new assets into your living trust

Transferring new assets into your living trust

A living trust does not automatically encompass assets acquired after its establishment. To include these new assets in the trust, they must be transferred into it, a process often referred to as funding the trust.

When a new asset is acquired, the title of the asset must be changed to reflect the trust's ownership. For instance, if Jane Smith establishes a living trust and later purchases a new car, the title of the car should be changed to Jane Smith, Trustee of the Jane Smith Living Trust. This process can vary depending on the type of asset, but it generally involves completing paperwork to officially change the ownership.

The critical role of continual trust funding

Omar Zambrano emphasizes the importance of continually funding your trust with new assets. If new assets are acquired and not added to the trust, they will not be subject to the trust's terms upon the trustor's death. Instead, these assets will likely have to go through probate, which can be a lengthy and costly process that the establishment of a living trust aims to avoid.

Furthermore, assets not included in the trust may not be distributed according to the trustor's wishes. They will be subject to the terms of the will or, in the absence of a will, the state's intestacy laws. This could potentially lead to disputes among heirs and beneficiaries, causing unnecessary stress and conflict.

Professional assistance from Omar Zambrano

While the process of adding new assets to a living trust can be straightforward, it can also be complex, particularly for certain types of assets. Transferring ownership of real estate or certain financial accounts may involve additional steps and legal considerations.

This is where the expertise of Omar Zambrano comes into play. As an attorney specializing in living trusts, he can guide you through the process, ensuring that all legal requirements are met and that your assets are properly protected within the trust. He offers free consultations at 626-338-5505, providing invaluable advice to navigate the complexities of trust funding.

A living trust is not a static entity. It should evolve with your financial situation. As you acquire new assets, it's crucial to ensure they are properly added to your trust. By doing so, you can ensure that all your assets are managed according to your wishes, providing peace of mind for you and your loved ones.

Omar Zambrano, with his extensive experience and expertise in living trusts, is an invaluable resource in this process. Regularly updating your trust to include new assets is a key part of achieving a smooth transition of your estate when the time comes.

Thank you.

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