Living Trusts & Bank Accounts

By Maggie Lourdes

You can place your bank accounts and other assets in a living trust so they bypass probate when you die. Avoiding probate generally saves time and money for the beneficiaries of your estate. You must physically change the titles of your assets from your individual name to the name of your trust for them to skip the probate process upon your death.

Titling Bank Accounts

You can easily transfer your bank account into your living trust. A bank generally requires proof of your trust and may require completion of a bank form before making account transfers. Your bank may accept a certificate of trust in lieu of a full copy of your trust. A certificate provides you greater privacy because it only identifies basic information, such as the trust's name and trustee. Generally, you maintain full control over your bank assets after titling them into trust -- and you can convey bank accounts back out of the trust at any time.

Protect your loved ones. Start My Estate Plan
Should a 401(k) Be Put Into a Living Trust?

References

Related articles

How to Title Assets for a Trust

Transferring property from yourself to your revocable or irrevocable trust is known as funding the trust. Only assets that are properly titled to the trust can avoid probate at your death. Exactly which assets you should transfer, depends on your financial picture -- but how you title the assets is the same for various trusts.

Guidelines for Using a Pour-Over Will in a Living Trust

Few things in law are exactly what they sound like, but a pour-over will is one. When you die, it essentially "pours" some of your assets into another estate-planning mechanism for distribution to your beneficiaries. Pour-over wills generally work in tandem with trusts. They address assets that -- for one reason or another -- you did not transfer to your trust.

Can You Transfer Debt Into a Living Trust?

A living trust is an agreement in which you transfer your assets into the ownership of the trust. You can retain control of those assets by naming yourself as trustee until your death, at which time a successor trustee takes over and distributes your assets to your beneficiaries. While you cannot transfer debt into a living trust, creditors might be able to reach the assets in the trust during your lifetime and after your death.

LegalZoom. Legal help is here. Start Here. Wills. Trusts. Attorney help.

Related articles

Does a Living Trust Need to Be Registered in North Carolina?

Living trusts, also called revocable trusts, are popular estate planning tools because they avoid the costs and delays ...

Is a Living Trust Liable or Subject to Probate?

A living trust holds assets that are managed by a trustee for intended beneficiaries. Also called a revocable trust, it ...

How to Revoke a Living Trust

If your trust is revocable, you have the right to amend it at will. However, sometimes the changes might be so ...

How to Prepare a Living Trust at Home

A living trust allows you to place assets under the care of a trustee who then distributes the assets to the ...

Browse by category
Ready to Begin? GET STARTED