The first step to having your assets owned by the revocable living trust is by setting up the living trust itself. Whenever you fund a living trust, this ensures that all of your assets are transferred to the trust. They will be owned by the trust and it can do as you intended it to. However, this is something that may require one to seek knowledge in order to get it right. Consulting with an attorney will give you all the advice that you may need. Such people will give you all the necessary advice you may need to make this work. Many people have also wondered whether this is a process that a person can do on their own.
Changing ownership to the trust
Whenever a person transfers assets living trust, then it means that one is changing the legal ownership of your assets from your name to that of the trust. It is common to find people creating a living trust within themselves such it will be the trustee. One will still be able to use and have control over their assets. However, they will be owned by the trust. Whenever one funds a living trust, the ownership will be changed or transferred to (your name), that is, Trustee of the (your name) Living trust. It is important to note that all the items in the trustee will not cease to use your Social security number. Getting started involves coming up with a list of all the items that you want transferred.
Transferring real property to your trust
Among the largest assets that many own is their homes. Before making the transfer, you have to be sure that it what you want to do. You can be able to make the transfer to the transfer by using a deed transfer. This is a document which is used when one transfers ownership to the trust. Using a warranty deed is a good option since it ensures that one has a good title once the transfer is done. It also ensures that beneficiaries down the line can be able to sell it. Checking with an attorney is the best thing to ensure which of the deed is good for your case.
Deed transfer and mortgage
A deed transfer should not have any effect with to your mortgage. This is regardless of whether you have a due on sale provision. However, make a point of checking your title’s insurance whether there is any. One can easily transfer it to the trust. In other cases, the insurance company may insist that the trust should purchase a new policy. Once you have completed the transfer, it is better to change homeowner’s insurance in order to indicate that the trust is the new owner of the property.