Funding is an important part of establishing a trust. After all, these will be the assets that you pass down to your loved ones and other beneficiaries. How do I put my property in a trust in Wisconsin?
Once you understand the steps involved, the process is usually easy, and you can start keeping your property safe for the future. We will walk you through how to add these assets to your trust.
Know Your Trust Inside and Out
Before you start, you need to know the type of trust you have or want to establish. There are two main types:
Revocable Living Trusts
These trusts are flexible. They can be changed or updated during your lifetime. You maintain control over the assets you place in the trust, and they will still be part of your taxable estate.
Irrevocable Trusts
These are more permanent. Once assets are transferred to an irrevocable trust, they are no longer yours. Under most circumstances, you cannot make changes.
Review Your Trust Document
Your trust document is the rulebook for your trust. It outlines what types of property you can include, how the assets will be managed, and how they will be distributed to your beneficiaries. Take time to read it, as it will clarify what is allowed. If anything is unclear, you will want to reach out to an attorney for guidance.
Choose the Property to Transfer
A trust can hold a wide range of assets. Common items people transfer include:
- Real estate, such as your home, vacation, or rental properties
- Bank accounts and investments, including checking, savings, and brokerage accounts
- Tangible personal property, such as jewelry, art, vehicles
- Business interests or shares in an LLC or partnership
- Life insurance policies if you want to name the trust as a beneficiary
- Intellectual property like patents or copyrights
You will want to take inventory of your assets and decide which ones to add. Some items, like retirement accounts, might not be directly transferred.
Retitle Property to the Trust
One way to fund your trust is by retitling assets so that the trust becomes the legal owner. The process is a little different for each type of property:
Real Estate
You need to update the title if you want to transfer your house or other real estate into your trust. In most cases, you will need to create a new deed or prepare a quitclaim or warranty deed that transfers ownership from your name to the trust.
After that, you need to submit the signed and notarized deed to the Register of Deeds office in the county where the property is located. This step makes the transfer official.
If the property has a mortgage, let your lender know. Most will allow the transfer to a revocable trust, but you will still need to confirm.
Financial Accounts
If you want to transfer bank or investment accounts, you may want to contact the financial institution. Most of the time, they will ask for a copy of your trust document or a summary called a certification of trust. From there, they can help you retitle the account in the trust’s name.
Vehicles
Transferring a car or other vehicle involves updating the title at your local Wisconsin Department of Motor Vehicles agency. You will need to bring the vehicle title, your trust document, and any required DMV forms. However, you will need lender approval before making changes if your car is financed.
Business Interests
If you own shares in an LLC, partnership, or corporation, you must follow the business entity’s rules. Take time to review your operating agreement or shareholder agreement and update the ownership records to reflect the trust as the new owner.
Tangible Personal Property
Items like furniture, jewelry, or collectibles do not usually require formal paperwork. Instead, you can draft a simple document. This is often called an “assignment of personal property.” With that, you can state that these items are now part of the trust.
Update Beneficiary Designations
Some assets, such as retirement accounts like IRAs or 401(k)s and life insurance policies, cannot be directly transferred into a trust due to tax rules. Instead, you can name the trust as the primary or contingent beneficiary.
Get Help to Fund Your Trust
Adding property to your trust might seem like a lot of work, but it is worth the effort. This process ensures your assets are protected, managed according to your wishes, and passed on smoothly to your loved ones.
How do I put my property in a trust in Wisconsin? Collins Law Firm can help. We offer estate planning, estate administration, business law, and elder law services. We proudly serve Southeastern Wisconsin and the Milwaukee area. Contact us or call (414) 207-6292. Schedule your free and confidential consultation today!