A trust may hold your valuable properties and use them to provide income for your family after you die. As noted by MarketWatch, you may change the name on the titles of your real estate assets and financial accounts when you create a trust.
After placing your assets into your trust, a trustee generally has responsibility for managing them. If you currently buy and sell real estate, your trustee takes over those duties as described in your trust’s instructions. With a rental unit, for example, your trustee can oversee its rent collection and distribute income to your beneficiaries as specified in your trust document.
Who may I name as a trustee?
Some individuals choose a relative or an adult child to manage their trust. According to Kiplinger’s Personal Finance, trusts containing real estate or family businesses may require a fiduciary who acts on behalf of your beneficiaries’ interests.
An experienced and objective third party may have a better understanding of complex tax and financial matters related to your trust. Your surviving family members, however, can work with a trustee to purchase assets and distribute income. A team that can communicate effectively may lead to a long-lasting trust that provides income for several generations.
How often may I change my trust?
If you create a living trust, you may change it as many times as you wish while alive. You may also serve as its trustee and add assets or dispose of them for your beneficiaries. When executing an irrevocable trust, however, control of the assets within it shifts immediately to the trustee.
Trusts may preserve your assets and provide income for your beneficiaries. They may also enable your heirs to bypass the probate process. Depending on your trust’s purpose, you may structure it as you wish to meet your family’s financial needs.